GKN to keep its defence

GKN will not follow GEC and split off its defence business, chief executive CK Chow said this week as he unveiled record full-year pre-tax profits of £462m, up 14%. Chow said GKN would take part in defence industry consolidation via alliances and mergers. But some observers believe quitting defence would make more sense than creating […]

GKN will not follow GEC and split off its defence business, chief executive CK Chow said this week as he unveiled record full-year pre-tax profits of £462m, up 14%.

Chow said GKN would take part in defence industry consolidation via alliances and mergers. But some observers believe quitting defence would make more sense than creating joint-ventures over which GKN would have only partial control.

Chow said GKN’s existing armoured vehicle merger with Alvis and the imminent alliance between GKN Westland Helicopters and Finmeccanica’s Agusta will allow it to take advantage of further consolidation.