UK-based GKN has acquired full ownership of Velcon, the Mexican constant velocity joint (CVJ) joint venture it formed with Grupo DESC for $83 million.
GKN had held a 49% share in the joint venture since it was established in 1979.
With forging, machining and assembly operations employing 623 people, Velcon produced more than one million side shaft vehicle sets last year for DaimlerChrysler, Ford, General Motors, Renault-Nissan and Volkswagen, as well as for the automotive aftermarket. As part of GKN, the facility will be renamed GKN Driveline Celaya.
GKN Driveline is one of the world’s leading suppliers of vehicle driveline products and systems, commanding a 42% share of the market for CVJ sideshafts.
The company, which recorded total sales of $3.2 billion in 2003, currently has 21,000 people working at 49 locations in 31 countries.