Allis-Chalmers will be split into two companies.

One firm will handle overseas operations and the other will be involved in the North American market. Svedala Allis AB will be headquartered in Malmo, Sweden, and will consist of the current Allis-Chalmers subsidiaries in Europe, Latin America, Asia and Australia, plus related operations in North America. Allis-Chalmers, which will continue to be based in Milwaukee, will serve the U.S. and Canadian markets. The industrial equipment company will retain an interest in Svedala Allis after private and public offerings of shares in the new company.