A NEW leadership team has taken control at the UK's leading solenoid manufacturer, guaranteeing 150 jobs at the site.

The move at Bishop Auckland-based Mechetronics, established 80 years ago, will see a new ownership duo of Mitchell Wolfe and Jim Summerbell.

The two have bought out shares formerly owned by venture capital provider 3i, which revealed it was seeking to end its six year association with the firm.

The Newcastle firm provided £1m in equity and loan funding back in 1994, after a management buyout at the firm

Mr Wolfe who was cheered by the workforce when he made the announcement yesterday afternoon, said: "This is tremendously exciting time for ourselves and the company.

"After a difficult first year following the original management buyout, we have forged ahead in a challenging world market.

"This current move leaves the company on a firmer financial footing than before, and will provide a launching pad to build on our success to date, and to move the business even further ahead."

The company's products were also recently awarded a place in the prestigious catalogue of the UK's biggest distribution company for electrical items.

A management buyout team purchased the solenoid-making arm of Warner Electric back in July 1994, renaming it Mechetronics, after former US-based owner Dana Corporation threatened to close the plant. The team paid around £2m, for the lossmaking business with a £10m-a-year turnover. At the time, 350 Warner workers transferred to Mechetronics while 100 stuck with their former employer.

There are currently 150 full-time and 30 temporary staff working at the firm. which makes electrical components used in vending machines, lorry air brake systems and bank cashpoint machines.

The firm has also reorganised its management team with company sales and managing director, Ron Fairbairn being made redundant.