GKN completes £38m sale of its stake in German emissions business

MIDLAND engineering group GKN has completed a £38m deal to sell its 50% share in German emissions reduction technology business Emitec.

Based in Lohmar, near Bonn, Emitec was established as a 50:50 joint venture with Continental in 1986. The deal has been completed following the necessary regulatory approvals.

Emitec is a specialist manufacturer of metallic catalytic converter substrates and more recently of selective catalytic reduction dosing systems. Following the €46m cash-based transaction, Continental will have 100% ownership of the business.

Redditch-based GKN will use the net proceeds to reduce group debt.

Nigel Stein, Chief Executive, GKN, said at the time of the deal that Emitec had been a great investment for GKN and was a good business that would now benefit from full technology connection with Continental’s emissions control systems.

Emitec’s product portfolio includes metal catalytic converters, particle filter components, and dosing modules for selective catalytic reduction (SCR). Since being established, the company has produced more than 170m of these components.

It now has a worldwide workforce of approximately 900 employees, with locations in Europe, the US and Asia.