GKN Sinter Metals' Expansion in China Supports Global Growth Strategy

SHANGHAI, China, March 6 -- GKN Sinter Metals will establish a new, wholly-owned operation in China as part of its global value-creating growth strategy.

Following a series of new business wins from Asian and European automotive customers operating in the region, GKN Sinter Metals plans to set up a new facility in Danyang, three hours from Shanghai.

The new plant will become operational late in 2006 and during the next four years its workforce is expected to increase from 180 to 500 as new business goes into production.

Andy Reynolds Smith, chief executive of GKN Sinter Metals and the senior executive responsible for GKN's development in China, said, "This is a strong signal of our continuing commitment to this market and our belief in its potential.

"A powerful presence in China is critical to the long term growth plans of both Sinter Metals and GKN Group. Our objective is to provide our customers with an unmatched global operational and technical capability. Expansion in China is a critical next step in enhancing our position in this respect from both a domestic business and export perspective.

"GKN has been operating very successfully in China for 17 years and now has a number of plants producing products for the automotive, industrial and off highway markets. We currently employ 2,000 people across our wholly-owned businesses and joint ventures. By the end of the decade we expect that number to have risen to more than 4,000."

GKN Sinter Metals, with more than 30 locations worldwide and business assets spanning 15 countries on five continents, has annual sales approaching $1 billion. It is the world's leading producer of precision powder-metal components. The company employs some 7,000 people and produces more than 10,000 different parts for the automotive and other industrial markets. GKN Sinter Metals is a wholly-owned subsidiary of GKN plc, a global industrial company based in the United Kingdom.

For more information about the company, visit http://www.gknsintermetals.com/ .