Nearly 100 jobs have been saved at a Mid Wales factory after a management buyout.

SPX Contech, based at Buttington Cross Business Park, Welshpool, had been facing a bleak future after its US parent company filed for bankruptcy in December.

But the management at the factory has since agreed a deal to purchase the firm from the parent company and will now trade under the name CastAlum.

The company, which supplies lightweight diecast components for the automotive market, has announced that all 95 workers – 88 permanent and seven temporary – will keep their jobs.

Keith Brown, sales director, said he hoped the company would be in a position to take on more staff next year.

He said: “Despite the downturn in the automotive sector, we have managed to keep all of our jobs here in Welshpool.

“In fact the Welshpool foundry has not only maintained all of its staff, but it is looking to recruit another 20 members of staff over the next 12 months.

“I would like to thank everyone involved in making the deal happen, it was a very complex deal.

“It will come as a huge relief for everyone concerned. It has been a very hairy six months for us.”

The buyout was led by Peter Radcliffe, managing director, who has run the business since it was founded by its American owners in 2001, along with Mr Brown, Carl Kiteley and Mark Simpson.

Mr Radcliffe said there had been “a lot of uncertainty” for staff in the UK after the parent company Contech LLC filed for bankruptcy last year.

“All the management and staff continued to work extremely hard through these difficult times, ensuring the business did not suffer while we pulled the deal together,” he said.

“We are now delighted to be an independent entity and look forward to building on our world class facilities and strong customer relationships.”

The company’s products are used by a range of European car makers, including Ford, Fiat, Renault, Jaguar, Opel and Aston Martin.

It makes steering rack housings, power take off housings and car knuckles, used in suspension.

By Andrew Morris