Castle Eden-based Bonds Ltd has acquired Alston-based Precision Products (Cumberland) for an undisclosed fee in a deal which secures the jobs of 65 workers.
This will dovetail with Bonds’ existing plant in Tow Law – Bonds <link _top>Foundry – which employs 85 people and has a turnover of £7m.
Bonds’ chairman Paul Duncan said the Alston plant, which has an annual turnover of £3.5m, will be renamed Bonds Precision <link _top>Castings.
And he went on to say that the company was on the lookout for further acquisitions.
Mr Duncan said: “The two <link _top>foundries have a similar customer base and the takeover will allow for economies of scale between the two sites.
“The Alston site produces <link _top>steel castings which are particularly good for the oil and gas sector. This sector and the export markets have proved particularly strong in the last 12 months and we expect to see that growth continuing.”
Mr Duncan says Bonds is still looking to buy a company which makes products not made in Tow Law, which focuses on <link _top>heavy duty castings weighing up to 12 tonnes, and Alston, which concentrates on smaller products.
He believes the company will need to make further acquisitions to provide a broader offering and accommodate further growth as both existing <link _top>foundries are working up to full capacity.
Precision Products, which has been based in Alston for 60 years, produces high-specification, small <link _top>steel castings by the Shaw Process, a specialist ceramic method that it was instrumental in inventing.
Bonds is a holding company formed 12 years ago that specialises in acquiring and reviving businesses in traditional engineering sectors.
In January 2007, Bonds sold its Steels Engineering companies to Redhall Group plc.
Mr Duncan added: “Bonds Precision is at the heart of the Northern traditional manufacturing base which for the region’s well-being is vital to maintain, especially with regard to the current difficulties in other sectors.
“It is a privilege for Bonds Ltd to be able to impact positively on the business’s future.
“Following years of rationalisation in the UK <link _top>steel foundry sector, those companies remaining typically have solid foundations, mainly in niche sectors with specialist applications and healthy worldwide demand for their products.
“Through consolidation in the sector we aim to obtain cost-savings from scale and joint marketing benefits of an expanded product range.”
