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GKN Sinter Metals to Acquire Connecting Rod Business Unit

28 July 1998

GKN Sinter Metals to Acquire Connecting Rod Business Unit From Borg-Warner Automotive, Inc.

    AUBURN HILLS, Mich., July 28/ PRNewswire/ -- GKN Sinter Metals, the
world's leader in powder metallurgy components with sales in excess of $500
million, has signed a letter of intent to purchase the precision forged powder
metal connecting rod business of Borg-Warner Automotive, Inc. .
This business is based in Romulus, Michigan and employs 325 people.  Sales in
1997 were $32 million.  The final sale is subject to the completion of due
diligence, negotiation of a purchase agreement and review by the appropriate
governmental agencies.
    Seifi Ghasemi, President and Chief Executive, GKN Sinter Metals said,
"This will be an excellent acquisition for GKN Sinter Metals.  It is our
declared strategy to expand our businesses in powder metal technology and
components.  The connecting rod business is experiencing rapid growth due to
the substitution of powder forged components for traditional cast and wrought
forged components in automotive engines."
    GKN Sinter Metals is headquartered in Auburn Hills, Michigan, making the
Romulus plant, where capacity has been expanded in the last year, an ideal
location to develop the connecting rod business.  GKN Sinter Metals produces
connecting rods in the U.S. at Emporium, Pennsylvania and in Germany.  In
addition, the group is at the forefront of research and development of powder
metallurgy products.  It has developed and patented a number of technologies
for manufacturing connecting rods which produce savings for automotive
customers in the machining of the components.
    GKN Sinter Metals is a world leader in powder metallurgy products for both
the automotive and non-automotive markets.  The business has operations in
10 countries serving the North American, European, Asian and following a
recent acquisition in Argentina, the South American markets.  It employs over
5,000 people.
    GKN Sinter Metals is a wholly owned subsidiary of GKN plc.  GKN plc is a
global industrial company with sales in excess of $5.5 billion.  It has
operations in more than 40 countries and employs 35,000 people in subsidiaries
and a further 12,500 in joint ventures.  GKN's operations include automotive
and off-highway vehicle products, aerospace and defense, and pallet pooling
and waste management.