Sundram Fasteners Ltd today said it had entered into a memorandum of understanding with Dana Spicer Europe Ltd on November 23, 2003, to purchase their precision forge unit at Cramlington, UK, as a going concern.
The MoU is subject to the parties completing outstanding matters.
Sundram officials refused to comment when contacted, and indicated that an elaborate statement would be made as soon as the deal was sewn up.
Cramlington Precision Forge is one of only three trade precision forge businesses in Europe capable of producing heavy-duty precision forged differential gears.
Its products include loose gears, other transmission components and equipment. The Northumberland-based company is also into design and metrology.
At Cramlington, gear teeth are finish forged, making them stronger, cheaper and lighter than cut components. The technology here also allows extra design features to be added to forged components to increase their strength.
