Dyno Industrier AS (PO Box 779, N-0106 Oslo) has signed a definitive agreement with the US-based Walbro Automotive Corporation for the sale of its fuel tank business (see Plasteurope.com No 9501). Final completion of the transaction is expected in the summer. The two companies have agreed on a sales price of $ 124m for the business, subject to certain adjustments. This is expected to give Dyno a pre-tax profit of around NOK 250m. However, the sale will necessitate restructuring expenses at some of Dyno's remaining plastics plants.

Dyno is leading European producer of plastic fuel tank systems and supplies most of Europe's vehicle manufacturers. Turnover for the business last year was NOK 1bn. Dyno has six fuel tank production facilities in France, Spain, Norway, Germany, Belgium and the UK. "The automotive industry is increasingly demanding that suppliers accept responsibility for expanded system deliveries. For Dyno this would have meant investing heavily to build up know-how in areas outside our core plastics expertise, such as pump technology and electronic. Following a thorough evaluation of our options we have decided to withdraw from this market in order to concentrate more closely on those areas we have defined as core business," says Dyno President and CEO Arild Ingierd.

Walbro Automotive is a leading designer and manufacturer of automotive fuel system components, with production facilities in the USA, Brazil, France, Japan and Korea. According to company president Gary L. Vollmar, Walbro Automotive intends to retain Dyno's fuel tank systems employees after the acquisition to provide continuity for customers and to facilitate the transfer of Dyno's manufacturing expertise to Walbro.

Following the sale of the corporation's fuel tank business, Dyno's plastics division consists of 18 plants in 10 countries. The division manufactures packaging products, components and systems for a variety of industrial applications as well as marine products. Among its main markets are the chemicals and manufacturing industries, the food and beverage industries, the automotive industry, as well as the fishing and fish processing industries. Plastics production will continue to be one of Dyno's core businesses, and the corporation expects the plastics division to have a turnover of some NOK 1.5bn in 1995.