Thyssenkrupp has merged its forging activities to create one of the world's biggest companies in the sector.
The German engineering and steel group has set up 'Forged Technologies' in order to help further expand its product portfolio over the coming years.
Thyssenkrupp hopes this will mean less reliance on parts for combustion engines though it will still specialise in components for the automotive and construction sectors.
"By combining our forging activities we are positioning Thyssenkrupp’s components business to achieve further profitable growth," said Dr Karsten Kroos, CEO of the company's components business.
"Central management of our worldwide production network will enable us to use our facilities more efficiently and align them even more closely to customer requirements.
"With our combined value creation capabilities we also aim to develop new products for new industries and markets."
The new unit will be turnover in the region of €1bn and will employ 7,000 staff from bases not just in Europe but in North and South America, India and China.