Allis-Chalmers Selling Hydro-Turbine Business
MILWAUKEE (AP) _ Allis-Chalmers Corp. announced an agreement Monday to sell its hydro- turbine business at York, Pa., to a German company.
The Milwaukee-based manufacturer said a letter of intent had been signed for the sale to J.M. Voith GmbH of Heidenheim, West Germany.
″This action is a direct result of our stated program to divest product lines and services not meeting thie corporation’s strategic objectives,″ Wendell F. Bueche, chairman and chief executive officer of Allis-Chalmers, said.
″Although the hydro-turbine business has been profitable, bonding requirements and capital-investment facilities require too large a commitment of both financial and management resources.″
Bueche said the deal would provide an opportunity to reduce debt and redistribute resources ″to other businesses in the Allis-Chalmers Fluid Products Co., such as the pump business and the repair, servicing and upgrading of power generation equipment.″
The transaction is subject to conditions including approval of boards of directors of Allis-Chalmers and J.M. Voith.
Terms were not disclosed.