Volvo’s Aero sold to GKN

Unions and the UK government have welcomed the sale of Swedish truck-maker Volvo’s aeronautic unit Aero to British engineering group GKN.

The £633 million deal will bolster the UK aerospace industry’s position as the biggest in Europe, Business Secretary Vince Cable said.

He added: “Our aerospace sector, which employs 100,000 people, is world class and through deals such as this continues to bolster its position as Europe’s largest.”

Volvo Aero designs and builds components for aircraft engine turbines. It employs about 3,000 people in Norway, Sweden and the US.

Ian Waddell, national officer of Unite, described the deal as a “bold acquisition”, adding: “This is good news for GKN and good news for the UK.”