A Canadian wire manufacturer has snapped up a rival in Rotherham – after it bought assets from a Sheffield company which collapsed into administration.
Central Wire Industries of Ontario has acquired Hempel Wire from its German parent company.
It comes after Hempel bought trademarks, trade names and intellectual property from Fox Wire in Stocksbridge to become a leading supplier of stainless steel wire in the UK.
Included were the rights to the SUPA family of alloys, including SUPA 75, a well-known and long-standing leader in oil and gas industry applications.
Fox Wire went into administration in December with the loss of 40 jobs after if failed to find new finance to support the business following downturns in its key oil and gas industry markets.
The 170-year-old company – once part of British Steel – was until recently the UK’s largest maker of engineering wiring.
Central Wire Industries boss Paul From said Hempel’s managing director James Roper would stay in post.
He added: “This acquisition significantly broadens the product offerings of CWI, expands our reach in existing markets, and enables new market opportunities.
“We are truly pleased to make this announcement and are delighted to welcome James Roper and the Hempel Wire team and business into the CWI Group.”
Hempel was advised by Jim Whittaker and Alan Metcalfe of Baker Tilly Corporate Finance.
Finance Yorkshire is expected to lose out on £1.3m funding it made to Fox Wire, while administrators do not envisage there will be enough money to pay unsecured creditor claims estimated at £2.4m.