| FARNBOROUGH, England, July 17
FARNBOROUGH, England, July 17 GKN is on
the hunt for acquisitions in the aerospace components industry,
its chief executive said, as the British engineering company
sees the sector as ripe for consolidation.
"We have our eye on things we'd like to do, and we keep
watching those situations," Chief Executive Nigel Stein told
Reuters in an interview on Wednesday.
Declining to comment on GKN's reported interest in buying a
wing manufacturing facility being sold by U.S. company Spirit
Aerosystems in Tulsa, Oklahoma, Stein said that these
sorts of deals were often "long-play".
The company's 633 million pound ($1.08 billion) acquisition
of Volvo AB's aerospace division was four years in
the making, he noted.
When questioned on the Tulsa site in the past, Stein has
said it would be logical to assume that GKN would be interested
Compared to the car parts sector, Stein said that the
aerospace components industry had a more regional complexion but
this was set to change.
"I think you're going to see the Western industries
consolidating, as we see new entrants in the East, Brazil,
Mexico, and India, the whole of Asia," he said.
A growing focus on cost from customers, including
planemakers Boeing and Airbus, as well as the
increasing complexity of their projects could also help spur
consolidation, Stein said.
Stein refused to be drawn on the budget for any GKN
acquisition but he pointed to the Volvo purchase, which was
GKN's biggest ever, and was secured with a 140-million-pound
"For the right deal, the scope is there if you make a good
case to shareholders to do large things," he said.
($1 = 0.5846 British Pounds)
(Reporting by Sarah Young; editing by Jason Neely)