Fifty jobs at a Sheffield steel firm have been saved after it was bought out of administration.
Kiveton Park Steel was snapped up by a company controlled by Henry Dickinson, an owner-manager of British manufacturing businesses, after nine months of being run by administrators.
The deal secures 50 of the 100 jobs at the firm on Dog Kennels Lane, Kiveton Park.
FRP Advisory negotiated with 16 parties interested in the business and assets, resulting in several offers.
Phil Pierce, partner at FRP Advisory and joint administrator, said: “The sale is a great result not just for Kiveton Park Steel, Sheffield and the wider Yorkshire economy, it is also encouraging for the steel industry across the UK which continues to meet the challenge of global competition.
“Amid the wider political uncertainty around the UK’s relationship with the EU, the sale to Mr Dickinson may provide a signal of confidence in the regional economy which will be welcome to the people of Sheffield and South Yorkshire.
“We are grateful to the support of Kiveton Park Steel’s customers throughout this long process, which allowed the administrators the time to secure the best possible long-term outcome for the ongoing business while ensuring 100 staff were kept in work through the critical three-month period up to Christmas last year and then another six months this year.
“We would particularly like to thank all staff for their dedication and loyalty, helping the business to continue to deliver the quality products its customers have come to expect. We wish all those involved with the on-going business the very best for the future under the new ownership of British manufacturing and engineering owner-operator Henry Dickinson.”
Kiveton Park Steel makes bright steel coils, bars and wire, mainly for the UK car industry. The company has traded under continuous family ownership since 1922, but in recent years faced plunging prices due to global competition.
In September, administrators put the firm up for sale, made 20 redundancies and struck deals with key customers.
The purchase was supported by ABN AMRO Commercial Finance which was advised by Dean Gormley, banking and finance partner at Irwin Mitchell.
James Elliott, business development manager at ABN AMRO, said: “The UK steel industry continues to face some very tough trading conditions and this rescue deal therefore provides some much needed positivity for the sector.
“Henry Dickinson is looking to take the business forward and is confident that Kiveton Park Steel, with its processing capability and loyal customer base, has a viable future.”