Bondshold, the northern foundry group, announces the acquisition from Bradken UK of its heavy foundry and machining facility in Scunthorpe, North Lincolnshire.
With the capability to produce iron and steel castings up to 20 tonnes finished weight, this acquisition gives the Bonds group access to new customers and potential business from Australia, South Africa and the USA, including a three-year supply agreement to Bradken. All 73 employees will transfer to the new business, which is to be called Bonds Heavy Castings.
By acquiring the best equipped UK heavy foundry, the Bonds group now has the capability to produce the largest range of castings of any UK foundry player, also with a diversification into iron.
Bondshold has been supported by North Lincolnshire Council in the purchase of the Scunthorpe facilities with a development grant of £500k from the British Steel Support Fund.
Paul Duncan, Bondshold chairman, said: ‘We are grateful for the support from North Lincolnshire Council, without which we could not have completed this strategically important acquisition.’
Bondshold has recently changed banks to Barclays, the biggest corporate bank in the North East, which has facilitated the transaction. Swinburne Maddison and Tait Walker assisted with legal and accountancy matters respectively.
Due to another year of reduced activity in the oil/gas market and the impending threat of Brexit having an adverse effect on our business to European markets, Bonds Foundry announces the consolidation of its County Durham operations across its three sites in Tow Law and Crook to give greater operational efficiencies. Consultation with its 112 employees begins today.
Paul Duncan said: ‘The UK foundry sector is still of strategic importance to many UK and overseas manufacturers of equipment used in utility, industrial and marine developments. It is all too easy during adverse times for these traditional businesses to flounder. Over twenty years Bonds has bought such businesses and changed them sufficiently for them to continue.
‘These developments will make the Bonds group stronger to help overcome the ongoing market challenges and leave us better placed for the future.’