A Black Country manufacturer has switched from making mirror housings and bodykits for MG Rover to beer taps for the brewing industry.
Asdec faced severe problems with the collapse of Longbridge which accounted for 70 per cent of its business.
But the firm, which employs 17 people at its base in Kingswinford, has bounced back with new orders with other automotive suppliers and moving into new markets.
Asdec, which sprays decorative external components and finished metalwork, is now supplying beer taps for a brewing chain as well as office furniture. It has also invested in a new plant and upskilled its workforce to take on more work.
Peter Hughes, who owns the company, said: "About 70 per cent of our business was with MG Rover and the loss of that work knocked a £500,000 hole in it.
"But now we are expanding again and getting in more work than before.
"We have increased our workload by about 50 per cent, cleared our losses and things are looking up."
Despite the demise of its MG Rover business, Mr Hughes said the company was never close to calling it a day.
He said: "Every day in business there is a danger of going under, but we never thought of closing down once.
"The end of Longbridge wasn't a surprise, although it was still very sad. We knew it was coming, we expected it to happen and had some actions in place."
The company is owed £88,000 for components supplied to Longbridge, but Mr Hughes said he expected to get nothing back.
Asdec received help from the Rover Taskforce to cushion the blow of the lost Rover work, with the company accessing the wage replacement scheme which meant it did not have to lose any staff.
Mr Hughes said: " We retrained many of the staff to do different manufacturing, to be more flexible so we could do different kinds of work.
"Now we have new automotive projects with second tier suppliers, providing painted parts for people selling to other OEMS,
"We are also spraying parts for the brewing industry, and painting castings which are used for beer pumps. It is good work and our standards and competitiveness from the automotive industry puts us in a good position.
"Because of the rigorous standards of the automotive industry, the transition has been fairly seamless.
"This has contributed to replacing the lost Rover work and we are projected to be getting close to £1 million sales again."
The new directions followed by the firm mean it is less dependent on the automotive industry.
Asdec and its sister companies MHL Automotive - which supplies consumables such as tapes and aerosols - and Electroflock, a maker of flockcoated glove boxes, have diversified.
Mr Hughes: "Altogether we are a group of about 45 people, working in different areas which makes us more robust.
"Everyday when you are a supplier you have to do something new. This was an opportunity to upgrade from being a general operative to becoming highly skilled spray painters."
Asdec has also spent £20,000 on new equipment, while it is exploring possibilities in the white goods market and the medical sector.