23.02.04
Jobs saved as firm takes over neighbour

Jobs have been saved and the future looks bright again for a specialist Redruth engineering company following its takeover by a neighbouring firm.

A funding package co-ordinated by Truro-based chartered accountants Bishop Fleming has resulted in the acquisition of Hardmetal Engineering by Welding Electrode Store Ltd, with the formation of a new company, Hardmetal Engineering (Cornwall) Ltd.

Bishop Fleming, supported by Business Link Devon and Cornwall, assembled the necessary financial package, comprising a loan from Objective One project South West Investment Group (SWIG) and matching finance from Barclays Bank.

Hardmetal's original owner Graham King was keen to pursue other opportunities and had been trying to sell the business for a long time without success; there was a real danger that the alternative would be closure and the loss of nine longstanding and highly skilled jobs. Now it is hoped that the new company can expand and increase its workforce.

Hardmetal Engineering, on Barncoose Industrial Estate, was founded in 1979 and specialises in producing a wide range of wear products and punch die sets in a variety of materials for a broad spectrum of industries.

It works with some of the hardest metals on the planet to extremely high degrees of accuracy, routinely achieving tolerances that are 20 times finer than a human hair!

"We are delighted to have the opportunity to take Hardmetal Engineering forward to a better future,” said Andrew Hosking, managing director of Welding Electrode Store Ltd, which is based on Treleigh Industrial Estate. "It is a strong business with highly skilled staff and fits very well with our own excellent team.”

"This will help protect the highly skilled jobs in the business and provide a platform for future growth,” said Bishop Fleming partner Ian Fraser. "It is a doubly encouraging development given the importance of highly skilled engineering businesses in Cornwall and in view of the Redruth-Camborne area's industrial heritage.

"Both companies have very specialist expertise, with the majority of their turnover being sourced from outside Cornwall. Hardmetal is one of the few companies in the country involved in its type of work.”

SWIG fund manager John Peters commented: "We have been involved in many projects with Bishop Fleming and Business Link and this one was a great opportunity for us to support a business that is good for Cornwall and good for the Redruth-Camborne area.”

Adam Fry, Corporate Relationship Manager, Barclays, adds: "I am thrilled that Barclays was able to assist with the necessary financial package for this business project. This is an excellent example of how business partners can work together, enabling local businesses to realise their potential and meet their business aspirations for the future.”

Welding Electrode Store Ltd is principally involved in the manufacture of specialist resistance welding equipment, including spot welding electrodes and associated items. Steady growth since its formation in 1990 has seen its turnover climb to nearly £2 million and 34 full-time jobs, with 95 per cent of factory output to non-Cornwall-based customers.

Editor's notes:

For further information, please contact: Andrew Hosking of Hardmetal Engineering (Cornwall) Ltd on 01209 315005 OR Ian Fraser or Mark Norton at Bishop Fleming on 01872 275651.

Jason Clark
Communications Adviser
Objective One Partnership Office
Castle House
Pydar Street
Truro TR1 2UD
Tel: 01872 241379
Fax: 01872 241388
objectiveone@cornwall.gov.uk

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