The future of a West Bromwich-based steel processor has been hailed as secure following its sale to a Spanish-based multi-national.
Steel & Alloy, whose headquarters are on Union Street in West Bromwich, has been sold to Spanish-based Gonvarri Steel Industries.
The group also has plants at Cannock, Darlaston and Warley, another base in County Durham, and a joint venture in Istanbul.
Managing director Mark Cooper said: “Steel & Alloy is Gonvarri’s first acquisition in the UK. They will provide additional strategic direction and financial backing, securing the long term future of the business.
“Gonvarri is focused on steel processing, primarily for the automotive sector and other industrial markets, and is both successful and highly respected. Gonvarri is a large organisation and has extensive links with steel makers and OEMs alike. It is the perfect fit.”
The 300,000 tonnes of steel processed by Steel & Alloy is used in the production of vehicles manufactured by the likes of BMW, Ford, General Motors, Honda, Jaguar Land Rover, Nissan and Toyota.
Steel & Alloy was founded by David Ashwell in 1968 to process steel for the UK automotive sector.
The four children of Mr Ashwell, who inherited the business when their father died, have agreed to sell the entire share capital, in order to see their father’s legacy go to a good home.
Gonvarri is a large predominantly family-owned industrial company which consolidated its presence in Spain and then became European leader in steel service centres, processing in excess of 3 million tonnes in 10 countries.
The Spanish group has also established itself as a leading player in the design and manufacture of automotive components through its sister company, Gestamp Automoción.
It has extended its reach to Latin America, Asia and the USA and is currently expanding into renewable energy.
