Dowlais Group

Dowlais Group Ltd. is 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. Annual Results 2024 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. Julian Franks, Colin Mayer, Stefano Rossi. The Origination and Evolution of Ownership and Control London Business School, 1 December 2002^
  7. Philip Turner. Making the most of it Or – are you driving a GKN? Motor, 10 May 1969^
  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^