Timken, union sign labor pact
The United Steelworkers of America has ratified a new contract through 2000 with Timken Co. The agreement takes effect in September when the current contract expires. Timken makes bearings and alloy steels. The company has 19,000 employees worldwide, with sales of $2.4 billion.
BRAKES - LucasVarity PLC has completed the acquisition of the Mexican brake manufacturer Frenos y Mecanismos. The former Varity Kelsey-Hayes had owned 40 percent of the Frenos facility in Queretaro, Mexico. Varity Corp. merged last year with Lucas Industries PLC to form LucasVarity PLC. LucasVarity has purchased the remaining 60 percent from UNIK Corp. Frenos makes calipers, drum brakes and disc brakes for Chrysler Corp. and General Motors.
STEEL - Timken Co. will merge two of its tool steel service center subsidiaries, Ohio Alloy Steels Corp. in Youngstown, Ohio, and Houghton & Richards Corp., headquartered in Marlborough, Mass. The new company will be called OH&R Special Steels Co.
EXHAUSTS - Tenneco Automotive will acquire the manufacturing operations of Michel, a privately owned, Poland-based manufacturer of replacement market exhaust systems. Michel employs 60 workers and recorded sales of $1 million last year.
AFTERMARKET - Federal-Mogul Corp. has sold its South African aftermarket operations to Chariots Holding Ltd. The sale includes nine parts warehouses and a national distribution center. Federal-Mogul also sold its chain of 57 retail stores in South Africa to Lexshell 16 Investment Holdings (Proprietary) Ltd., a private investment company.