Sixty-five jobs have been saved in Scunthorpe thanks to the acquisition of a foundry site in the area.
Bondshold, the northern foundry group, has announced the acquisition from Bradken UK of its 22-acre foundry and machining facility in Scunthorpe.
The group has been supported by North Lincolnshire Council in the purchase of the Scunthorpe facilities with a development grant of £500k from the British Steel Support Fund.
With the capability to produce iron and steel castings up to 25 tonnes finished weight, this acquisition gives the Bonds group access to new customers and potential business from Australia, South Africa, Canada and the USA, including a three-year supply agreement to Bradken.
All 65 employees will transfer to the new business, which is to be called Bonds Heavy Castings.
The Bonds group now has the capability to produce the largest range of castings of any UK foundry player, also with a diversification into iron.
Bondshold has recently changed banks to Barclays, the biggest corporate bank in the North East, which has facilitated the transaction. Swinburne Maddison and Tait Walker assisted with legal and accountancy matters respectively.
Paul Duncan said: “The UK foundry sector is still of strategic importance to many UK and overseas manufactures of equipment used in utility, industrial and marine developments.
“These strategic developments will make the Bonds group stronger to help overcome the ongoing market challenges and leave us better placed for the future.”
Councillor Liz Redfern, chair of the British Steel Taskforce, said: “The British Steel Support Fund was set-up to help businesses like Bondshold.
“The £500,000 funding will allow them to take over the Bradken site in Scunthorpe, safeguard 65 jobs and create a further 40 jobs over the next two years, which is fantastic.”