New Manufacturing Plant Signals GKN's Continued Growth in China

LONDON, March 29 -- GKN plc of the UK today officially opened its latest manufacturing operation in China.

The new business - GKN Zhongyuan Cylinder Liner Company Limited (GKNZ) - is a joint venture between GKN, which holds 59% of the company and Henan Zhongyuan Engine Fittings Stock Company Limited which holds 41%.

The new GKNZ plant, which has been established on a greenfield site in Mengzhou City, Henan Province in the People's Republic of China, will produce truck engine cylinder liners.

Construction of the green field facility began in April 2005 and early production trials were underway by the end of the year. At its full capacity, which is due on stream by the end of 2006, the site will produce 3 million cylinder liners per annum for the domestic Chinese and export truck markets and will employ in the region of 700 people.

By this time, the two partners will have jointly invested some GBP16.3 million in the facility, which incorporates full foundry and machining operations.

Mr Walter Rohregger, Managing Director of the newly established GKN China office in Shanghai, was among the 300 hundred-plus attendees at the opening.

He said: "A strong presence in China is critical to GKN's continued development and this new company with its brand new manufacturing facility is another step forward in our strategic growth in this important market. GKN has been operating successfully in China for 17 years and we currently employ 2,000 people across our wholly owned businesses and joint ventures. By the end of the decade we expect our continued expansion to double our China workforce to more than 4,000."

For further information: GKN Corporate Communications, T +44-(20)-7463-2354