Doncasters Shifts Strategy to Aerospace Growth as Sales Improve
Doncasters Group Ltd., a supplier of advanced metal castings to turbine makers from Rolls-Royce Holdings Plc (RR/) to Siemens AG (SIE), is shifting strategy toward global expansion as its turnaround plan nears completion.
Doncasters, owned by Dubai International Capital LLC, may set up operations in India and eastern Europe, or expand its facility in China to help tap new markets and lower costs, Chief Executive Officer Tariq Jesrai said in an interview.
“After two years of trying to get our arms around the business and getting the fundamentals right, it is now about gaining growth,” said Jesrai, who joined the Burton-Upon-Trent-based company in October 2011 from McKechnie Aerospace. The company has a “strong interest” in aerospace assets, he said.
Doncasters, founded by Daniel Doncaster in 1778 in the northern England city of Sheffield that dominated the U.K.’s steelmaking industry, was acquired by Dubai International in 2006 for 700 million pounds ($1.1 billion) from Royal Bank of Scotland Group Plc. The company had sales of about 800 million pounds last year, Jesrai said, compared with approximately 600 million pounds in 2008.
Doncasters, which raised $1.3 billion in loans in April to refinance debt, agreed in June to acquire fastener maker Automatic SMP to expand its aerospace activities. Competitor Precision Castparts Corp. (PCP) has signed nine acquisitions in the last 18 months, according to data compiled by Bloomberg.
Doncasters has yet to complete its turnaround so a sale of the business by its private equity owner is not on the near-term agenda, Jesrai said.
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