However, TRW says neither its nor Brake Engineering’s commercial activities are expected to be impacted by the acquisition. It plans to retain the existing management team at the Wrexham company.
The move comes just two months after TRW cut 128 jobs at its brake plant in Pontypool. That was blamed on the loss of a contract to supply components for the Toyota Corrolla, which accounted for a quarter of the factory’s output. It had already made 150 redundancies in September 2005, blamed on lost business following MG Rover’s collapse.
Founded in 1981 as a brake calliper remanufacturer, the company achieved sales totalling £15.3m in 2005. It now designs, develops and makes braking products, including callipers, pistons, discs and drums, plus wheel cylinders and remanufactures driveshafts for the independent aftermarket.
Francois Augnet, vice president of TRW Aftermarket for Europe and Asia Pacific, says: “This acquisition underlines our commitment to becoming the leading safety systems supplier to the aftermarket. We believe the addition of Brake Engineering’s operations expands our manufacturing presence in Europe and strengthens our competitive position.”
Brake Engineering’s managing director, Steve Willis, says he hopes to gain from accessing TRW Aftermarket’s manufacturing and commercial best practices. He adds: “This business combination represents an excellent fit, bringing together two companies that are committed to remanufacturing premium quality products for the aftermarket.”