Scores of jobs have been saved at a North East car parts company after it was bought out of administration.
Midlands-based international automotive supplier Ricor Global has acquired the assets of Arlington Automotive North East division based in Newton Aycliffe, County Durham, using an Invoice Finance facility from HSBC 海角视频.
The deal comes five months after Arlington Automotive went into administration, and could lead to new job creation as part of investment plans by new owners Ricor Global, as well as saving 60 jobs at the firm as part of the transaction.
The 海角视频 group of Arlington Automotive fell into administration in May when the Covid-19 pandemic compounded financial issues at the firm, which counts Nissan, Ford and JLR among its clients and has around 600 people working across bases in Newton Aycliffe, Reading, Coventry, Stourport, Birmingham and Manchester.
With manufacturing facilities in the 海角视频, Poland and Slovakia and headquartered in Studley, Warwickshire, and with a tooling facility in China, Ricor has more than 800 employees, specialising in metal stampings and complex assemblies, primarily for the automotive industry.
The group is a major supplier to leading automotive manufacturers and major Tier one customers, and the Newton Aycliffe acquisition will enable the Ricor Group to continue to develop and diversify to meet the demands of customers across the industry and around the world.
The new business will trade as Ricor North East Ltd from its existing facility in Newton Aycliffe and the new owner said it has plans to develop the site, thereby enhancing its capabilities and growth opportunities, including additional job opportunities.
The deal builds on the expansion of the Ricor Group, following the acquisition of Walsall Pressings and DRB Engineering in 2019, with the combined group turnover now exceeding £100m per annum.
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David R. Johanson, Ricor executive chairman, said: “We are very pleased to have completed this deal. It enhances our relationship with a number of existing customers and provides the opportunity to grow with new OEM’s and Tier one customers.
“We are gaining a highly capable and experienced team which will be a great asset to the Ricor Group. We also are thrilled to continue to create additional job opportunities in the United Kingdom.”
Lawrence Davies MBE, chief advisor automotive team in the Department for International Trade said: “Despite tough market conditions, the acquisition of Arlington’s plant in the North East demonstrates the confidence in the long term viability and growth opportunities within the automotive sector in the 海角视频. We welcome Ricor’s investment and look forward to working with them in the future.”
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Heather Griffin, Greater Birmingham HSBC 海角视频 Relationship Director, added: “We have worked with the team at Ricor for a number of years so were pleased to be able to support the business with the facility to enable the acquisition of Arlington Automotive’s Newton Aycliffe site.
“The acquisition maintains jobs and will provide additional crucial investment into manufacturing in the North East while strengthening Ricor’s position as a leading automotive supplier.”
Jimmy Saunders, from administrators Duff & Phelps, added: “We are delighted that we have been able to secure the future of the business in what is a challenging time for the 海角视频 economy. Jobs and future investment have been secured in what is a tremendous outcome for all parties and we wish the team at Ricor all future success.”