Dyno Industrier AS (PO Box 779, N-0106 Oslo) has signed a letter of intent for the sale of its automotive fuel tank systems division to the US-based Walbro Automotive Corporation. The agreement covers Dyno's six fuel tank system production plants located in Europe. Dyno is today one of the leading suppliers of plastic fuel tank systems for the European automotive market. In 1994, Dyno supplied over 1.3m tank systems. Along with other technical blow molded parts for the automotive industry, these represent a turnover of over 150m.

Dyno: "International automotive production is undergoing significant change. The automotive industry is reducing its total number of suppliers and expecting that those remaining accept responsibility for expanded system deliveries. Each supplier must therefore be in a position to deliver total systems that are increasingly more comprehensive. The fuel tank system delivered by Dyno today is part of a more extensive total fuel system that also will be faced with stricter environmental regulations. In the future, these increased environmental demands will require the development of new technology, in part in areas not traditionally emphasized by Dyno such as pump technology and electronics. In addition, there is a clear tendency toward a globalization of both the automotive manufacturers and their suppliers which will require that suppliers establish facilities in an increasing number of countries." These developments are expected to require the investment of an ever greater level of resources by total system suppliers to the automotive industry. As a result Dyno has evaluated three alternatives for its involvement in the market: continued investment on its own, cooperation with another producer or divestment of this activity. "Dyno's fuel tank systems operations are well developed – with modern production facilities, strategic locations and deliveries to popular car models – giving us a good basis for continuing this activity on our own or in an alliance with others," says Dyno President and CEO Arild Ingierd. "Our decision to evaluate a withdrawal from the fuel tank business in spite of such strengths is a part of an overall strategic decision to further increase the focus on our core businesses. Through a sale of the fuel tank systems division, we will free resources making it possible for an even stronger focus on Dyno's remaining core business areas – civil explosives, plastics, adhesives and specialty chemicals."

Dyno's plastics activities in the future will include packaging products for industrial and food applications, components and systems for industrial markets, as well as various maritime products. Dyno will continue to supply injection molded plastics components to the automotive industry. In addition to fuel tank systems, four of the six plants covered by the letter of intent are also involved in the manufacturing of plastic packaging, an activity that Dyno will continue.

Through the acquisition of Dyno's fuel tank business Walbro will grow as a global supplier of complete fuel storage and delivery systems. Dyno know how in the design and manufacture of fuel tank systems in combination with Walbro's expertise in this area will form the basis for further expansion in other parts of the world. The agreement with Walbro provides for the fuel tank activity in each of the plants to continue as before under current management. Walbro Automotive Corporation today designs and manufactures fuel systems for American automobiles. In Europe its joint-venture company Marwal Systems supplies pumps and in-tank fuel modules for fuel systems.