Industrial group to make £30m cuts to ‘increase momentum’

GKN is planning to reduce its fixed costs by £30m in order to “increase momentum going into 2017”.

The industrial group, which is cutting 251 jobs in Telford as a result of a completed contract to build chassis platforms for the Land Rover Defender, has said it expects this year to be “another year of growth”.

Sales were up 17%, to £4.52bn, in the six months to June, while pre-tax profits rose 12% to £344m.

Nigel Stein, chief executive of GKN said: “This is a good set of first half results with GKN continuing to make underlying progress in line with our expectations. Each division has continued to deliver against our strategy.

“GKN is in good shape with excellent technology and strong positions in the aerospace and automotive markets.

“With our excellent technologies, global footprint and strong focus on costs we are very well placed to compete and succeed in the future.”  

Last October the group spent £500m on Dutch aerospace supplier Fokker, which is expected to boost its 2016 figures.