The British aerospace and car parts company GKN is hoping to raise approximately £423m through a rights issue in order to secure the future financial security of the company. The engineering company recently celebrated it 250th anniversary and is hoping that by slashing jobs it can weather the economic storm.

Nearly 3000 workers have been made redundant and eight plant closures are already under way.

Sir Kevin Smith, chief executive of GKN expressed his thoughts on the strategy:

“The global recession has had a significant impact on both our business and credit market conditions,”

 “The rights issue that we have announced today will strengthen our capital structure and give us the flexibility to take advantage of new opportunities for development and growth.”

Despite a return to profit in March Sir Kevin Smith said the outlook for the rest of the year was uncertain.

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