Dowlais Group

Dowlais Group plc
Company typePublic
LSEDWL
IndustryAutomotive
Powder metallurgy
Founded2023 (2023)
HeadquartersLondon, England
Key people
Simon Mackenzie Smith
(Chairman)
Liam Butterworth
(CEO)
Revenue £4,337 million (2024)[1]
£(106) million (2024)[1]
£(168) million (2024)[1]
OwnerDauch
Websitewww.dowlais.com

Dowlais Group plc was a British company operating in the automotive and powder metallurgy industries. It was listed on the London Stock Exchange and was a constituent of the FTSE 250 Index[2] until it was acquired by Dauch in February 2026.[3]

History

In April 2023, Melrose Industries completed the demerger of GKN Automotive and GKN Powder Metallurgy from GKN as Dowlais Group.[4][5] This name was chosen with the intention of evoking the Dowlais Ironworks where GKN licensed the Bessemer process, using it to produce steel, in 1865.[6]

GKN Automotive originated from J. W. Garrington, a company specializing in forgings initially produced at the Garrington Darlaston plant and later supplemented by the Bromsgrove plant. This made GKN a major supplier of crankshafts, connecting rods, half-shafts and numerous smaller forged components to the UK auto-industry, which underwent a period of significant expansion over time.[7]

Later, a new factory dedicated to the production of wheels was established near Wellington, Shropshire. By the 1960s, the company had become a manufacturer of constant-velocity joints, which are used to transfer the engine's power to the wheels.[7]

In turn, GKN Powder Metallurgy has its origins in Hoeganaes Corporation in North America, which GKN acquired in 1998.[8]

In July 2025, six months after it was announced that American Axle had made a $1.4 billion offer to acquire Dowlais,[9][10][11] the transaction was approved by the shareholders of both companies.[12][13] The deal was completed after the court also approved the transaction on 30 January 2026.[14] By March 2026, visitors to the Dowlais website were being redirected to Dauch, the recently renamed American Axle.[15]

References

  1. ^ a b c "Annual Results 2024" (PDF). Dowlais Group. Retrieved 5 March 2025.
  2. ^ "Melrose Industries (UK): Demerger of Dowlais Group (UK): Changes in FTSE UK Index Series". FTSE Russell. 20 April 2023. Retrieved 20 April 2023.
  3. ^ "Dauch Corporation Completes Acquisition of Dowlais Group plc". Yahoo! Finance. Retrieved 2026-02-10.
  4. ^ "Melrose sets GKN demerger in motion". Investors' Chronicle. 10 March 2023. Retrieved 15 April 2023.
  5. ^ "Melrose set for Dowlais demerger". UK Investor Magazine. 10 April 2023. Retrieved 15 April 2023.
  6. ^ Franks, Julian; Mayer, Colin; Rossi, Stefano (1 December 2002). The Origination and Evolution of Ownership and Control (PDF). London Business School. p. 19.
  7. ^ a b Turner, Philip (10 May 1969). "Making the most of it Or – are you driving a GKN?". Motor. pp. 58–60.
  8. ^ "GKN pays pounds 335m for US metal components firm". The Independent. 8 December 1998. Retrieved 15 April 2023.
  9. ^ "UK Car Parts Maker Dowlais Agrees to $1.2 Billion Merger With American Axel". Bloomberg. 29 January 2025. Retrieved 14 February 2025.
  10. ^ "American Axle to buy GKN automotive owner Dowlais in $1.4 billion deal". Reuters. 30 January 2025. Retrieved 14 February 2025.
  11. ^ "U.S. Auto-Parts Maker American Axle To Buy Britain's Dowlais For $1.4 Billion". Forbes. 29 January 2025. Retrieved 14 February 2025.
  12. ^ "Recommended cash and share combination of Dowlais Group plc with American Axel & Manufacturing Holdings Inc". www.aam.com. Retrieved 2025-08-02.
  13. ^ "Recommended Combination with American Axle & Manufacturing Holdings, Inc". www.dowlais.com. Retrieved 2025-08-02.
  14. ^ "Court sanction of scheme of arrangement". Dowlais Group. 30 January 2025. Retrieved 2 February 2026.
  15. ^ "On Tuesday, February 3, 2026, Dauch Corporation (formerly American Axle & Manufacturing) acquired Dowlais Group plc and its subsidiaries – GKN Automotive and GKN Powder Metallurgy". Retrieved 20 March 2026.