Two engineering firms go bust and are reborn
Two linked engineering companies with longstanding roots in the region have gone bust - and been reborn.
Newburgh Engineering and Newburgh Precision went into administration after hitting financial trouble, with both bought by bosses in pre-arranged sales.
Newburgh Engineering, based in Bradwell in the Hope Valley, was hit by a £4m pension deficit, up £660,000 on the year before. The firm, set up in 1939, went into administration in October. Certain assets were immediately acquired by a new company, Nuclear Energy Components Ltd, with original boss Vince Middleton still in charge and all 16 jobs preserved.
It is understood the pension debt will be picked up by the Pension Protection Fund.
Meanwhile, as part of the process, administrators called in a debt owed by sister company Newburgh Precision, based in Rotherham.
Bosses there were unable to pay the ‘inter-company debt’ and also called in administrators, at Begbies Traynor.
It was snapped up with a new name of Vector X-Cel in a deal by management with another Rotherham company, X-Cel Superturn. All 66 jobs were preserved, according to Newburgh Precision and now Vector X-Cel managing director Dave Greenan.
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He said: “We were on the up, it was just bad timing, we took advice and we had no option. All our major customers are on board.
“We see the new company as having a good synergy between us and X-Cel, we will be stronger together.”
The new team at Vector X-Cel also includes Andrew Taylor, chairman and owner of the X-Cel Group.
He said: “I’m delighted to be involved with Newburgh, they have an unrivalled reputation for engineering expertise and will compliment the X-Cel group. We have exciting plans to invest heavily in the business.”
Both companies are manufacturers of precision machined components and assemblies for the oil and gas, nuclear, defence, power generation, aerospace and construction industries.