A PLASTICS firm that went into administration during the summer has been sold to a southern company.

Clearex Plastics, an injection moulding specialist, based at Fence Houses, near Sunderland, has been acquired by Formould, of Twyford, Berkshire.

The sale took place at the end of August for an undisclosed sum and followed the firm being placed in administration in July.

The company has 23 employees although there were a number of redundancies.

The firm had a turnover of £2m a year but it hit cash flow problems.

Administrator Ian Kings, of Sunderland-based Tenon Recovery, said: "There appeared to be a temporary lull in orders which led to cash flow problems that they couldn't plug.

"I am delighted that we have managed to secure the future of Clearex.

"The administration procedure allowed us to make the necessary changes to the business and achieve a sale.

"We have traded the company since receiving the administration order and the sale has undoubtedly resulted in the best solution for all concerned.

"It's pleasing when you get a sale like this because you have managed to keep a business going in the North-East."