Sale of Rheinmetall’s large-bore pistons unit to Koncentra Verkstads AB goes through
In a strategic move, Rheinmetall has successfully transferred its large-bore pistons production to Koncentra Verkstads AB (KVAB) based in Gothenburg, Sweden. This transition, which was announced back in October 2022, aligns with Rheinmetall’s objective of realigning its business strategy. The sale concluded following the appropriate legal reviews by relevant authorities, with an effective date retroactively set to January 1, 2023.
Initially formalized on October 24, 2022, through a share purchase agreement, the deal encompasses Rheinmetall’s entire large-bore pistons organization. This includes three production facilities situated in Germany, the USA, and China, as well as a steel pistons line at the small-bore pistons plant located in Marinette, Wisconsin, USA.
The divestiture is part of Rheinmetall’s broader strategic realignment initiated in 2021, designed to reduce the company’s dependency on components for internal combustion engines. With this sale, Rheinmetall ensures that its large-bore pistons business is placed in capable hands, as KVAB brings extensive market knowledge and a commitment to long-term investment. KVAB has specifically highlighted its dedication to retaining the skilled workforce from Rheinmetall’s operations.
Operating its entities as independent units, KVAB emphasizes collaboration with the existing management team moving forward. The newly formed company, KS Large Bore Pistons, will maintain the well-known Kolbenschmidt and KS brands, ensuring continuity in its external operations. A dedicated company has been established for the German facility, named KS Large Bore Pistons Germany GmbH, while the organizations in the USA and China — KS Large Bore Pistons LLC and KSLP China Co. Ltd, respectively — will remain unchanged.
