Castings buys business out of administration for £400k
A Brownhills iron castings and machining group has bought the fixed assets and stock of Russell Ductile Castings from its administrators for £400,000.
RDC in Scunthorpe was a subsidiary of Walsall-based foundries group Chamberlin and has some overlap in products with Castings in Lichfield Road.
RDC ceased production in May when administrators were appointed at the group.
Chamberlin and RDC had employed 129 staff across their operations in Walsall and Scunthorpe when the group appointed administrators from FRP Advisory.
Castings, which is mainly focused on the European heavy truck market, has paid for the assets in cash from Casting’s existing resources upon signing the purchase agreement on Friday.
IT plans to continue operating the Scunthorpe plant under a new 25-year lease with break clauses. RDC can produce castings in cast iron ranging from 10kg to 7,000kg for the capital goods and energy market.
The directors believe this acquisition will diversify Casting’s product offerings and enable them to better serve their customer base.
In the year to the end of May 2023, RDC generated revenue of £10.03 million and an operating profit of £450,000.
Castings had gross foundry capacity of 70,000 tonnes a year before the deal for RDC.
It also supplies the wind power, agriculture, rail and material handling markets.
