GKN
GKN Ltd is a British multinational automotive and aerospace components business headquartered in Redditch, England. It was a long-running business known for many decades as Guest, Keen and Nettlefolds. It can trace its origins back to 1759 and the birth of the Industrial Revolution. In 2018, GKN plc was acquired by Melrose Industries plc in a hostile takeover. Melrose divested GKN Automotive and GKN Powder Metallurgy in 2023 and listed them as Dowlais Group on the London Stock Exchange. GKN Aerospace continues to be owned by Melrose plc.
Throughout the majority of the twentieth century, though steel production remained the core of GKN it branched into tooling and component manufacturing. It was deeply impacted by government policies during the latter half of the century, during which Britain's steel industry was subject to multiple nationalisation and privatisation efforts. During the 1980s, GKN Steel reduced its presence in the steel sector, selling off or shutting down its works.
GKN Steel renamed itself GKN during 1986 to indicate its shift away from steel production. Business activities were re-orientated around the aerospace, automotive and industrial services markets. In 1994, GKN purchased Westland Aircraft. The company later organised a joint venture of Westland's helicopter interests with Agusta to form AgustaWestland and its sale to Italian defense firm Finmeccanica. During November 1995, Dana Corporation purchased GKN's axle group; the two firms continued to operate joint ventures in the field for many years.
During the early 2000s, it took over Tochigi Fuji Sangyo K.K, a Japanese manufacturer of differentials and driveline torque systems. During December 2011, GKN Aerospace Engineering services division was sold to product engineering firm Quest Global. In 2012, GKN acquired the Swedish aerospace engine specialist Volvo Aero. During 2018, Melrose Industries acquired GKN with a £8.1 billion deal.
Name
The company's name is the initials of three early figures in its history: John Guest, Arthur Keen, and Joseph Henry Nettlefold. All three were key figures in the field of iron and steel during the Industrial Revolution. Ivor Guest sold the Dowlais Iron Company in Wales to Arthur Keen and Windsor Richards of Birmingham's Patent Nut and Bolt Company in June 1900.They combined the two businesses and formed Guest, Keen & Co. Limited on 1 November 1900. A little over twelve months later, Guest Keen & Co bought and amalgamated Nettlefolds Limited into their new combine giving it the style Guest, Keen and Nettlefolds Limited.
History
1759 to 1900
The origins of GKN lie in the founding of the Dowlais Ironworks in the village of Dowlais, Merthyr Tydfil, Wales, by Thomas Lewis and Isaac Wilkinson. John Guest was appointed manager of the works in 1767, having moved from Broseley. In 1786, Guest was succeeded by his son, Thomas Guest, who formed the Dowlais Iron Company with his son-in-law William Taitt. Guest introduced many innovations and the works prospered.Under Guest's leadership, alongside his manager John Evans, and after his death in 1852 that of his wife Lady Charlotte Guest, the Dowlais Ironworks gained the reputation of being "one of the World's great industrial concerns".
Though the Bessemer process was licensed in 1856, nine years of detailed planning and project management were needed before the first steel was produced. The company thrived with its new cost-effective production methods, forming alliances with the Consett Iron Company and Krupp. By 1857, G.T. Clark and William Menelaus, his manager, had constructed the "Goat Mill", the world's most powerful rolling mill.
By the mid-1860s, Clark's reforms had borne fruit in renewed profitability. Clark delegated day-to-day management to Menelaus, his trusteeship terminating in 1864 when ownership passed to Sir Ivor Guest. Clark continued to direct policy, building a new plant at the docks at Cardiff and vetoing a joint-stock company. He formally retired in 1897.
1900 to 1966
On 9 July 1900, the Dowlais Iron Company and Arthur Keen's Patent Nut and Bolt Company merged to form Guest, Keen & Co. Ltd.Nettlefolds Limited, a leading manufacturer of fasteners, established in Smethwick, West Midlands in 1854, was acquired in 1902, leading to the change of name to Guest, Keen and Nettlefolds.
In 1920 John Lysaght and Co. was acquired.
Guest Keen Baldwins
Steel production remained at the core of the company, but under increasing profit margin pressure. In 1930, the company combined its steel production business with that of rival Baldwins to form Guest Keen Baldwins, which now held:- Baldwins: Coke ovens at Margam; Blast-furnaces and steel melting shop at Margam; steel works and rolling mills at Port Talbot; blast-furnaces at Briton Ferry; lime stone quarry at Cornelly
- GKN: Dowlais Iron and Steel Works; Cardiff Iron and Steel Works; coke ovens at Cwmbran; limestone and silica quarries
During the Second World War, all of the sites were heavily bombed by Nazi Germany's Luftwaffe, and the required investment meant that all of these assets were nationalised as part of the Iron and Steel Act 1949, resultantly becoming part of the Iron and Steel Corporation of Great Britain.
GKN were still highly reliant on the supply of good quality steel thus, in 1954, the business negotiated from the asset realisation company the repurchase of key assets from ISC, which were renamed Guest Keen Iron and Steel Co. In 1961, the company's name was changed again to GKN Steel Company.
Fasteners
These mergers heralded half a century in which GKN became a major manufacturer of screws, nuts, bolts and other fasteners. The company reflected the vertical integration fashionable at the time embracing activities from coal and ore extraction, and iron and steel making to manufacturing finished goods.Crankshafts
After the First World War, it became apparent that Britain was likely to follow France and the United States in developing a large scale automotive industry. During 1919, GKN acquired another fastener manufacturer, F. W. Cotterill Ltd. Cotterill owned a subsidiary named J. W. Garrington, which specialised in forgings; the forgings produced at the Garrington Darlaston plant, later supplemented by a large plant at Bromsgrove, enabled GKN to become a major supplier of crankshafts, connecting rods, half-shafts and numerous smaller forged components to the UK auto-industry, which had a period of massive expansion during the interwar period and beyond.Pressed steel wheels
Another company, eventually acquired by GKN, was founded by another steel manufacturing entrepreneur, Joseph Sankey. After training as a mechanical engineer in the late 19th century, Sankey founding a company that became a major producer of tea trays. A pioneering motorist, Sankey became friends with figures such as Herbert Austin, and was also a supplier of sheet steel components to the nascent British car industry. Because the wooden wheels on early cars had a tendency to disintegrate after hitting roadside kerbs, Sankey developed a pioneering pressed-steel wheel. Production started in 1908, with customers including Austin Motor Company and, later, William Morris. In addition to Sankey's original factory at Bilston, a new plant was established near Wellington, Shropshire, which was devoted to wheel production and known as GKN Sankey.Meanwhile, by 1914, GKN's customers for sheet-steel vehicle bodies had also come to include Austin, along with Daimler, Humber, Rover, Star and Argyll.
After John Lysaght acquired Joseph Sankey and Sons Ltd, GKN purchased both companies, in 1920.
By the 1960s, GKN was manufacturing many other kinds of automotive components, including chassis for the Triumph Herald and its derivatives. The company also developed the GKN FV432 armoured personnel carrier. By 1969, the highly-automated GKN Wheels Wellington plant was producing over 5½ million wheels per year, with a maximum rate of approximately 30,000 units per day.
Nationalisation of steel
The postwar government nationalised the steel industry under Iron and Steel Corporation of Great Britain. The act of parliament of 1949 took effect in February 1951.In 1951, a new subsidiary Blade Research & Development was formed at Aldridge, Staffordshire, to produce aero-engine turbine blades. Following a fall in demand for turbine blades in the late 1950s, the BRD factory switched to producing constant-velocity joints and driveshafts for vehicles.
In 1953, Britain's steel industry was de-nationalised by a new government; this policy only lasted for 14 years before being reversed.
1966 to 1991
At the end of April 1965, the recently elected Labour government published a White Paper proposing the nationalisation of 90 per cent, by output, of Britain's steel industry. GKN Steel was transferred to public ownership at the end of July 1967.Driveline
Beginning a programme of diversification into the automotive field in 1966 GKN bought BRD's much larger competitor, Birfield Ltd, which held the great bulk of the British market for CVJs, constant velocity joints, and was a company that since 1938 had incorporated both the Sheffield based Laycock Engineering later best known as a postwar overdrive manufacturer, and Hardy Spicer Limited of Birmingham, England, also a manufacturer of constant-velocity joints. Historically, such joints had few applications, even following the improved design proposed by Alfred H. Rzeppa in 1936. However, in 1959, Alec Issigonis had developed the revolutionary Mini motor car that relied on the Hardy Spicer joints for its front wheel drive technology. The massive expansion in the exploitation of front wheel drive in the 1970s and 1980s led to the acquisition of other similar businesses and a 43% share of the world market by 2002.On the death of founder Tony Vandervell in 1967, GKN acquired the lucrative Maidenhead-based Vandervell bearing manufacturer that was at the time exporting more than 50% of its output to overseas vehicle manufacturers. This was part of a larger trend for GKN that during this period, under its Managing Director Raymond Brookes, was working to reduce its dependence on UK auto-maker customers at a time when the domestic industry was seen to be stumbling, in response to bewildering "Government interference and fiscal short-sightedness", with British new car registrations in the first four months of 1969 a massive 33% down on the corresponding period of the previous year.
As a result of the large number of mergers, Abram Games was commissioned to develop a new corporate identity in 1969 when the distinctive angular GKN symbol was created and the new company colours of blue and white introduced. In 1974, GKN acquired Kirkstall Forge Engineering, a manufacturer of truck axles in Leeds.