Partner Article

Steel firm kickstarts recruitment drive

A STOCKTON-based engineering company threatened with closure has been bought out in a deal which has safeguarded 55 jobs in the region.

Steel plate processing firm Katmex Ltd, which manufactures products used in the construction industry, was facing closure when Japanese parent company Katsushiro decided to end its UK operations.

The company had seen turnover reduced by more than 50 per cent in the last two years which had led to the loss of 80 jobs.

But Managing Director Dave Mitchell seized the opportunity to save the firm and its remaining employees and turned to Business Link to assist the facilitation of a management buyout.

The business has now taken on 25 new employees and planning to employ up to another 10 by the end of the year, taking the overall workforce to 90.

Dave Mitchell said: “We have had an ongoing relationship with Business Link.

“We have already employed more staff and are looking to take on up to ten more in the near future which is incredible when you think we were looking at redundancy only a few months ago.”

The management buy-out was supported by Tees Valley Unlimited and Stockton Council through the Strategic Account Management (SAM) programme.

Councillor Ken Lupton, Leader of Stockton Council and a member of Tees Valley Unlimited’s Leadership board, said: “Katmex is a well respected Tees Valley company whose future is now secure thanks to this management buy-out.

“It’s not only really good news for the staff whose jobs have been safeguarded but for those people who have found employment as a result.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .