HUNDREDS of jobs have been saved after a County Durham tank track manufacturer was rescued from administration by its former owner.

Astrum, Weardale's biggest employer with 250 staff, went into administration yesterday and was immediately bought by William Cook Holdings.

William Cook, a Yorkshire-based industrial group, sold the firm in a management buy-out in September 2006.

Following yesterday's deal no jobs will be lost amongst the general workforce although it emerged last night that managing director Phil Kite, who led the buy-out, will not be remaining with the firm.

Last night Andrew Cook, chairman of William Cook, said: "I am delighted Astrum is re-joining the William Cook group after a 5 year absence.

"Its Stanhope plant always was a major player in the Cook organisation, and I look forward to it again becoming a key element of our growing company.

"It is particularly satisfying that, with Astrum back in William Cook ownership, the valuable jobs and expertise at the Stanhope plant are once again secure."

In June Stanhope based Astrum said its UK business had been hit by last October's Strategic Defence and Security Review, which will see an eight per cent cut in Ministry of Defence (MoD) spending over four years, and it was facing having to make up to 25 redundancies.

In 2009, Astrum made 30 redundancies after its commercial sector, based on earthmoving vehicles for the construction and mining industry, was heavily affected by the downturn.

But the firm's fortunes appeared to be improving when it took on 15 staff after securing a two-year extension to an MoD contract in February, last year, to supply the metal tracks for vehicles, including the Challenger 2 tank, worth £30m, and with the option of a further two years.

The business has also enjoyed a growth in exports, which increased from 23 per cent to 33 per cent of turnover in the past 12 months, and total revenue rose by ten per cent to more than £30m.

Mark Clephan, of financial services firm Ernst & Young, which led the sale of the firm, said: "Astrum is a company with a fantastic heritage and a market leader within the defence sector.

"The business is a leading supplier to the MoD and has seen good export growth in recent years.

"William Cook, the former owner of the business, has a fine industrial heritage of its own and is well capitalised to invest further in Astrum and build on its capabilities."

The family owned William Cook group has two plants in Sheffield and one in Leeds, employing around 700 people.

Its annual sales are in the region of £60m and it already has a presence in the defence equipment market through its subsidiary Cook Defence Systems.