Koncentra Verkstads AB Acquires Rheinmetall’s Large-Bore Pistons Production

Koncentra Verkstads AB Acquires Rheinmetall’s Large-Bore Pistons Production

(IN BRIEF) Rheinmetall, a Düsseldorf-based tech group, has officially transferred its large-bore pistons production to Gothenburg-based Koncentra Verkstads AB (KVAB). The transfer was announced in October 2022 and reflects Rheinmetall’s strategic reorientation towards new technologies and alternative drive systems in its civil sector activities. The sales contract covers Rheinmetall’s complete large-bore pistons organization, including three production plants in Germany, the USA, and China. KVAB, which sees the company’s highly skilled workforce as its most important capital, will take over the entire staff and run the business as autonomous, standalone units with a separate organization. The company “KS Large Bore Pistons” will retain the Kolbenschmidt and KS brands. The new company will be named KS Large Bore Pistons Germany GmbH for the German plant and the existing companies in the USA and China will be transferred unchanged.

(PRESS RELEASE) DÜSSELDORF, 27-Jan-2023 — /EuropaWire/ — Rheinmetall, a German integrated technology group active in the automotive and defence industries, has successfully transferred its large-bore pistons production to Koncentra Verkstads AB (KVAB) of Gothenburg, Sweden. The move, which was announced in October 2022 and completed on January 1st, 2023, marks a significant step in Rheinmetall’s ongoing strategic reorientation.

The transfer includes Rheinmetall’s complete large-bore pistons organization, including three production plants in Germany, the United States, and China, as well as the steel pistons line of the small-bore pistons factory in Marinette, Wisconsin, USA. The sale is part of Rheinmetall’s efforts to focus on new technologies and alternative drive systems in its civil sector activities.

KVAB, a leading provider of large engines, sees the acquisition as a long-term investment and intends to retain the highly skilled workforce of the acquired organization. The company operates as autonomous, standalone units, and will work closely with the existing management team to ensure a smooth transition.

Rheinmetall’s decision to transfer its large-bore pistons business to KVAB is a clear indication of the company’s commitment to shifting its focus towards new technologies and alternative drive systems. The move is also in line with the broader trend in the automotive industry towards electric and hybrid vehicles, which require different types of components than traditional internal combustion engines.

The successful transfer of the large-bore pistons business is a positive development for both Rheinmetall and KVAB. Rheinmetall can now focus on its strategic objectives, while KVAB has acquired a valuable asset that will support its growth in the future. The company’s intention of retaining the highly skilled workforce of the acquired organization is also a positive aspect of this deal, as it will ensure continuity and stability for the business going forward.

Media contact:

Oliver Hoffmann
Head of Press and Public Relations
Rheinmetall Platz 1
40476 Düsseldorf
Germany
Phone: +49 211 473-4748
Fax: +49 211 473-4157

SOURCE: RHEINMETALL AG