17th Jun 2024 11:06
(Alliance News) - Castings PLC has bought the fixed assets and stock of Russell Ductile Castings Ltd, a subsidiary of London-listed Chamberlin PLC, from administrators, Castings said on Monday.
The iron casting and machining firm, based in Brownhills, outside Birmingham, England, paid GBP400,000 in cash for the assets.
Russell Ductile is an iron foundry producing parts for the capital goods and energy market, some of which are common to Castings, it explained.
Russell Ductile ceased production following the appointment of administrators in May by Chamberlin for its two trading subsidiaries, the other being Chamberlin & Hill Castings Ltd. Chamberlin shares are suspended from trading on AIM and are due to be cancelled this month.
On Monday, Castings said that it intends to continue operating the plant from its existing site in Scunthorpe, over which a new 25-year lease has been agreed.
"The directors believe that the acquisition provides the opportunity to diversify the product offering of the Castings group with an established customer base that the directors are confident of being able to continue to service," Castings added.
Shares in Castings were up 2.7% at 386.00 pence each in London on Monday morning.
By Holly Beveridge, Alliance News reporter
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