UK: MBO saves 120 automotive forging jobs
One hundred and twenty jobs have been saved at a Black Country (Midlands) manufacturing company which has been in receivership for the past three months.
Employees at Sandwell Castings in West Bromwich were told that a management buy-out had safeguarded all their jobs.
Sandwell Castings, a 60-year-old business, produces aluminium and copper castings, mainly for use in the automotive and truck manufacturing sectors.
Administrative receivers from business advisory firm KPMG in Birmingham were appointed to the company on August 29th. At the time, the company's plight was blamed on a general economic malaise and the impact of the strong pound on exporting.
"In this instance, going into receivership provided the business with the ideal opportunity to restructure itself in line with a reduced order book," said KPMG spokeswoman Beverley Marsh.
Lloyds TSB Commercial Finance in Birmingham put together an asset-based lending facility to provide funding for the directors to buy the business from the receivers.
"Sandwell Castings is now in a stable position and can concentrate on the development of recently acquired new business. In particular, we hope to make the most of our fully mechanised production sand foundry, believed to be unique in the UK for the production of aluminium castings," said spokesman Steven Lloyd.