Jobs have been saved at a County Durham car parts company five months after it fell into administration as the pressures of the Covid-19 pandemic took its toll on finances.
The UK group of Arlington Automotive fell into administration in May when the coronavirus compounded financial issues at the firm, which counts Nissan, Ford and JLR among its clients and has around 600 people working across bases in Newton Aycliffe, Reading, Coventry, Stourport, Birmingham and Manchester.
Midlands-based international automotive supplier Ricor Global now has acquired the assets of Arlington Automotive North East division based in Newton Aycliffe, using an invoice finance facility from HSBC UK.
The deal saves 60 jobs at the firm, which had 113 working at the site last year according to latest filed accounts, and could also lead to new job creation as part of investment plans by new owners Ricor Global.
With manufacturing facilities in the UK, Poland and Slovakia and headquartered in Studley, Warwickshire, and with a tooling facility in China, Ricor has more than 800 employees, specialising in metal stampings and complex assemblies, primarily for the automotive industry.
The group is a major supplier to leading automotive manufacturers and major tier one customers, and the Newton Aycliffe acquisition will enable the Ricor Group to continue to develop and diversify to meet the demands of customers across the industry and around the world.
The new business will trade as Ricor North East Ltd from its existing facility in Newton Aycliffe.
The deal builds on the expansion of the Ricor Group, following the acquisition of Walsall Pressings and DRB Engineering in 2019, with the combined group turnover now exceeding £100m per annum.
David R. Johanson, Ricor executive chairman, said: “We are very pleased to have completed this deal.
"It enhances our relationship with a number of existing customers and provides the opportunity to grow with new OEM’s and tier one customers.
“We are gaining a highly capable and experienced team which will be a great asset to the Ricor Group. We also are thrilled to continue to create additional job opportunities in the United Kingdom.”
Jimmy Saunders, from administrators Duff & Phelps, added: “We are delighted that we have been able to secure the future of the business in what is a challenging time for the UK economy.
"Jobs and future investment have been secured in what is a tremendous outcome for all parties and we wish the team at Ricor all future success.”
