DENVER (Oct. 12)—Gates Corp. plans to exit the air springs industry on a timetable that allows for smooth transition for its customers to other suppliers.
The company plans to sell or close its air springs production operations in Denver, Mexico and Germany. Gates, a subsidiary of Tomkins P.L.C., is leaving the sector because "our analysis shows that the long-term potential of the air springs market is no longer in line with our strategic goals," according to Gates President Richard Bell.
The decision was made after Gates conducted a review of the global air springs market, the number of suppliers within the segment and the unit's potential for growth, the spokesman said.
All new business development activities within the division have ended, the company said in a prepared statement.