CovPress, which makes body panels for many of the leading automotive OEMs, has been bought from the administrators by Liberty Industries, saving 740 jobs.
The Coventry-based company, which has been owned by Chinese group Shandong Yongtai since 2013, appointed administrators in September after suffering from “significant and urgent funding issues”.
Eddie Williams, of administrators Grant Thornton, said: “CovPress is a fundamentally strong business. The sale to Liberty not only provides a secure future for this pivotal Midlands engineering enterprise but also means
that there should be funds available to distribute to creditors.”
Liberty Industries — part of the Liberty House Group — already has 17 engineering businesses employing over 1,000 people in the West Midlands. It completed the deal for CovPress on 10 January.
Chief executive Douglas Dawson said: “We are very familiar with the high quality of the operation at CovPress, plus the skills and equipment in the business, so we are extremely pleased that it is becoming part of the Liberty Industries Group. We have drawn up a detailed plan to ensure the future sustainability and profitability of the business.”
Mr Dawson added that CovPress, which will be re-branded as Liberty Pressing Solutions, is “a strong strategic fit, with its established presence in the automotive supply chain”.
He concluded: “There exists a huge opportunity for Britain’s industrial supply chain to achieve dynamic growth through becoming more innovative and competitive. By adding quality operations like CovPress to Liberty’s already thriving network, we aim to play a leading part in this landmark economic shift.”