A 113-YEAR-OLD engineering firm which went down to 24 staff and faced closure during the downturn has increased turnover and staff numbers to better than pre-recession levels.

Metal fabrication company Evenwood Industries, making specialist fabrications for construction equipment, went into administration in April 2009 after US-owned Caterpillar withdrew all of its orders.

The company, based in Evenwood, near West Auckland, County Durham was subsequently bought by Wolverhampton-based metalwork firm Fablink UK in June 2009.

Pre-recession Evenwood had a turnover in excess of £10m, but by the time administrator Geoffrey Martin and Co were appointed, it employed 88 staff, which was further reduced to 24, and in its first month of trading as Fablink Tank Systems Ltd had a turnover of £100k.

It now has an average monthly turnover of £1m and currently employs more than 140 people, including many staff made redundant when Evenwood went into administration.

Through its difficulties the firm was able to retain the support of long-standing customer JCB, which it provides with components including fuel tanks, and has been successful in securing contracts from new customers.

Richard Westley, chief executive of Fablink Tank Systems Ltd, said: “When it became clear that the Evenwood acquisition was viable, we had a lot of support from JCB.

“They really valued the products supplied from Evenwood in their own operations and actually helped Geoffrey Martin and Co find a buyer so business could continue and pledged to continue to commission work from us.

“This really helped to galvanise the deal and rubberstamp the operation. We’ve been successful at winning business with existing customers and new customers and an upturn in the Yellow Goods Market has also helped.

“This has enabled us to grow our operation and recruit again. We’ve been able to offer jobs back to a number of those who were made redundant when Evenwood went into administration.”

John Twizell, of Geoffrey Martin and Co, said: “This was a well run company and its customers had high regard for the management team, it was the victim of a brutal recession.

The company had two remaining key customers and we quickly entered into discussions with them. It became clear that they urgently required at least six week’s supply.

“We subsequently agreed a short term production run at prices increased to cover Evenwood’s costs, whilst marketing the business with the direct assistance of the two remaining customers.”

Mr Twizell said the deal showed the importance of working with the firm’s customers.

He said: “In this case it really paid off and, with the very active help of a customer, we were able to pass this wellrun business with great potential to a new owner.”