New North-East Engineering Company Formed Following Successful Management Buy-Out
A new company, specialising in the manufacturing of marine diesel engine coolant pumps for use in a range of industries, has been created in the North-east following a successful management buy-out.
A new company, specialising in the manufacturing of marine diesel engine coolant pumps for use in a range of industries, has been created in the North-east following a successful management buy-out.
LFH Engineering Ltd has been formed as a result of the deal agreed by local businessman, Les Hill, to purchase the pump manufacturing division of Peterhead-based, Terex Powertrain Ltd – a subsidiary of US-based global manufacturing firm, Terex Corporation.
Mr Hill, who was previously plant manager at Terex Powertrain Ltd, in Peterhead, says the agreement includes the securing of all assets, work-in-progress, and inventory from the pump manufacturing division of Terex, which has an impressive client list including Rolls Royce and Caterpillar.
All 19 staff previously employed by Terex within the pump manufacturing division will also make the move to LFH Engineering’s new base at Castlepark Industrial Estate, in Ellon, as part of the deal. A further seven employees will be added within the next few weeks.
The new manufacturing unit comprises a 8,000 sq ft warehouse, 2,500 sq ft of office space as well as car parking and yard storage.
Mr Hill, who is now managing director of LFH Engineering, says he is pleased to have concluded the deal – which secures the long-term future of jobs within the hard-hit manufacturing industry in Scotland – and is predicting a bright future for the new company with predicted first year sales of £2.5 million.
He said: “Although the pump, design and manufacturing division has always been successful and enjoys healthy aftermarket sales we will continue to explore new markets for our products as part of our long term business plan.
“The team which I have brought with me to LFH Engineering has a proven track record in engineering and maintenance and the division has an established and loyal portfolio of blue chip clients which have all expressed their support to LFH Engineering Limited.
“I believe the future is extremely positive for the company and look forward to increasing the range and quality of the products we offer and to enhancing the after sales service we provide our clients as a result of the increased space available to us at our new base in Ellon.”
The management buy-out was financially supported by the Royal Bank of Scotland, while A2B and Stronachs LLP were advisers to LFH Engineering on the deal. Enterprise North-east Trust also provided support.
