Two of Italy`s leading power transmission suppliers, Brevini Riduttori and Rossi Motoriduttori, have joined forces to create a company with a turnover of more than 30bn lire (£102m) and a global workforce of 1,100. The two family-owned companies hope that their 50:50 joint partnership will propel them into the ranks of the world`s top five suppliers within three years.

The companies plan to exploit their commercial and technological synergies to boost their presence on the global market. No job losses are planned.

Between them, Rossi and Brevini produce a wide range of gearboxes, gearmotors and speed variators. "We now have a complete power transmission range," says Amarjit Marwaha, Rossi`s UK managing director. Until now, Rossi has concentrated on standard products from a catalogue while Brevini has focused on customised products.

Marwaha hopes to capture 18-20% of the £100m-plus UK power transmission market within three to four years. At present, the two partners have a UK turnover of over £7m and a combined workforce of 37 people. Marwaha expects to recruit additional staff, probably next year. Rossi and Brevini`s existing UK premises in Coventry and Warrington will be kept.

Marwaha says that two companies have had different cultures and largely different customer bases in the UK. "We will be looking at how to co-operate to improve our customer service," he adds.

Globally, the combined companies are hoping to expand at an annual rate of 20-22%. "We now have the financial and human resources to grow at that rate," says Marwaha. Part of the growth will come through acquisitions, he adds.