AN 111-year-old metal fabrication firm, hit by the economic downturn, has been bought from administration, giving renewed hope to workers.
The Northern Echo understands that Wolverhampton-based metalwork firm Fablink UK has struck a deal to buy Evenwood Industries, based near West Auckland, County Durham.
The news came on the same day as research suggested the worst of the recession may be over.
It was unclear last night what the purchase would mean for the remaining workers at the plant, which went into administration in April.
But a source said: “They were told a week ago that a buyer was likely and that their jobs should be okay.”
Evenwood supplies parts for the construction industry, and the downturn in that sector had a knock-on effect.
It made 40 people redundant at the end of last year and laid off half the remaining workforce when it went into administration. But 37 workers were retained at the plant and administrators expressed hope it could be sold as a going concern.
Last night, two pieces of research suggested the worst of the recession may be over.
Think tank The National Institute of Economic and Social Research (NIESR) believed the country has passed the worst of the recession with a return to economic growth in April and May. NIESR said the economy hit a trough in March, but estimated there had been growth in gross domestic product in the past two months – a sign the recovery is in sight.
It admitted its monthly figures were subject to change, but said the picture was consistent with the broader view of stabilisation. And revised numbers from the Office for National Statistics showed the first growth in the manufacturing sector in more than a year.
They indicated that the downturn for manufacturers came to an end in March, with a 0.2 per cent increase month-on-month in national output. But Ross Smith, head of policy at the North-East Chamber of Commerce, said: “I cannot say in general terms that we have turned a corner just yet, but it seems people are at last seeing a slowdown in the pace of that decline.
“It would be a brave person who made a firm prediction on when we will come out of a recession, but there are definite reasons for optimism.”
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