US firm buys Irish aerospace group

US multinational Sundstrand Corporation has bought Shannon Aircraft Motor Works in Co Clare, for an undisclosed figure. The sale has been warmly welcomed by Shannon Development, which said last night it may encourage more world-leading aerospace companies to the region.

Shannon Aircraft Motor Works repairs and overhauls aircraft motor and generator components. It also has repair facilities in France and Canada. It was founded 10 years ago and has sales of $10 million (£6.8 million) a year, according to one of its founders, Mr Paramjit Neote.

Mr Neote, who is also the managing director, refused to disclose the sale price. The company serves more than 100 leading airlines, including Aer Lingus, British Airways, Sabena and Cathay Pacific.

It currently employs 77 people and this is set to increase to 130 over the next three years. Mr Neote said he would be remaining with the company and that they were not selling because business was not good, but that several of the six shareholders had wanted to retire.

Mr Neote said the deal would mean that his company could avail of additional resources from the US which would give them a distinct advantage over their competitors.

The company operates from a 28,000-square feet facility at the Aviation Park, having begun life in the Shannon Free Zone in an 11,000-square feet facility in 1988.

Sundstrand, which is part of the Illinois-based Sundstrand Corporation, said the deal would give it an increased presence in Europe and global service to the rest of the world for overhaul and repair business. In a statement, Mr Jim Peterson, General Manager, Customer Service, said the skills and dedication of Shannon Aircraft's workforce would be a welcome addition to the business.

Sundstrand designs, makes and sells technology based components for the aerospace and industrial markets. It employs 11,000 people worldwide and has operations in seven countries. Last year it had sales of $1.75 billion.

It is understood that Shannon Development had been trying to get Sundstrand to locate in the region for the past four years. It believes that the acquisition could lead other such aerospace groups to look at Shannon again.