A long-established boiler manufacturer in Scotland is set to expand after being bought out of administration.
BIB Cochran, based in Annan in Dumfrieshire, had been forced to call in administrator Baker Tilly after Malaysian parent company Mechmar said it could no longer provide necessary investment capital.
But now Baker Tilly has arranged a sale to boiler maker Shanghai Huanuan Boiler Vessel based in Hong Kong.
During the administration period the jobs of the 170 staff at the plant had been in doubt, but now the new management has indicated that the future is secure.
Staff at the company’s sales office in Lincoln have also been told their jobs are safe.
SHBV chief executive officer Dong Ping commented: “This is a world famous boiler brand. We plan to invest in new technologies while maintaining the manufacturing expertise in Scotland.”
He went on: “The intention is to maintain manufacturing capacity in Annan. SHBV sees Annan as being the headquarters of our furtherdevelopment of combustion, heat recovery, biomass and other boiler technologies.”
“The UK business will manage all aspects of interface with our worldwide network of agents, distributors and customers.”
Partner at Baker Tilly Restructuring & Recovery Keith Anderson, who helped broker the deal, commented: “It has been our number one priority to save as many jobs as possible.
“A newly formed company, Cochran, has acquired the business and its assets following our appointment, with 170 employees being transferred to it. This is a fantastic outcome.
“The seamless transfer of the business not only protects jobs; it provides a solid financial platform for the future while enabling it to retain relationships with existing customers.”
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