Bosch Rexroth has become the major shareholder in the Italian compact hydraulics specialist, the Oil Control Group. In another deal, it has sold its robotics business to the French firm, Stäubli.

The Oil Control Group, which employs more than 900 people, mainly in Italy, is a leading manufacturer of compact hydraulics for industrial and mobile applications, including screw-in valves and control blocks. Its 2003 turnover was €113m (£80m).

With the acquisition "we are further expanding our position in the fast-growing compact hydraulics market," says Rexroth chairman, Manfred Grundke.

Stäubli`s acquisition of Rexroth`s Scara robots business, will allow it to offer a full range of robots from four to six axes.

• Bosch Rexroth has announced a €83m (£59m) expansion of its Chinese production activities, including a new factory in Beijing which will produce axial piston machines.