An historic Midland automotive components business has been bought out of administration saving about 65 jobs.
Metal Pressings Group Ltd – which operates across two sites in Studley – has been acquired by local competitor Ricor for an undisclosed sum.
Ricor managing director John Beary said such consolidation was sensible given the difficult times for the sector.
Ricor, which has a £14 million turnover and employs about 100, operates from the Arrow Works site in Studley, near Redditch. It produces components and assemblies for first and second tier automotive businesses including products for steering systems, seat structures and fuel tank assemblies and many other applications. Ricor is a well-established business with manufacturing facilities in the UK and Europe.
Mr Beary said the plan was to move the Metal Pressings’ Studley Road operation into the Arrow Works site while retaining the Howard Road site.
He said: “With the downturn in the market our sector needs to consolidate to get through these difficult times. This will give us a wider customer base within existing markets and entry into new non-automotive sectors. We believe this gives us security and stability in the short term and leaves us well-placed to take advantage of the recovering markets going forward.” Ian Gould and Eddie Kerr at PKF handled the administration. Mr Gould said: “We are delighted to have achieved this sale and saved a significant number of the jobs involved. Ricor and Metal Pressings are a good fit.”
Metal Pressings Group, which had employed 175, called in the administrators in January. It blamed adverse trading conditions and less demand for its demise. The £20 million turnover business, originally founded in Birmingham over 75 years ago, was a major supplier to original equipment manufacturers (OEMs) and other manufacturers in the automotive supply chain. It also built up a portfolio of non-automotive clients.
Metal Pressings Group was created out of acquisitions of other companies. It acquired Component Metal Pressings in 1996 before taking over Dudley-based Sedgley Design & Engineering and Sedgley Pressings in 1997. In 2001, it picked up Progression Presswork, which was based in Market Drayton, and in 2003 it bought Redditch-based Fowkes & Danks.