Councillor Peter Lewis, said it was fantastic news for Llanfyllin.
Coventry based Marrill Group Ltd, took over the factory after the Welsh Government stepped in to buy the site earlier this month.
Its future has been in jeopardy since the former Shropshire based, automobile parts campany, Stadco, announced in October it was leaving the town.
Without the takeover more than 100 jobs would have been lost.
Councillor Lewis, said he had worked closely with Montgomeryshire's Welsh Assembly member, Russell George, who had lobbied the Welsh Government to buy the site.
"I would like to thank the Welsh Government for its involvement in this. Knowing the factory will remain open is a huge relief to everyone."
He congratulated Marrill Ltd in its acquisition.
"They are safeguarding jobs in the town.
"The investment in a new press from Spain, which will be the largest in the UK, showed the commitment of Marrill's to Llanfyllin and the factory. This is great news."
Stadco said it was consolidating its operations elsewhere in the UK.