German deal halts Umeco’s Manchester expansion plan

A SUBSIDIARY of composites group Umeco has acquired the assets of a German firm in a deal worth almost £2m.

The deal, the first since the group sold its Pattonair supply chain business, has seen German subsidiary Umeco Composites purchase the assets of Fenotec Ges from administrators for the cash sum of €2.2m (£1.9m).

Chief executive Andrew Moss said the deal “alleviates the immediate term need to expand capacity at our existing facility in Manchester”.

The company has a composite plastics unit in Middleton, north Manchester. It was acquired when it bought competitor firm Primco in 2007.

Moss also said that the assets it was purchasing were from a company based at Beelitz, near Berlin, which had been placed into administration in December 2010 following a €5m investment in new buildings and machinery.

Umeco said it quickly expected to add volume by manufacturing in Beelitz its own established range of prepreg materials. It will also distribute from the facility a wide range of structural and process materials for the advanced composites industry.

“The equipment we are purchasing is virtually brand new, of a very high quality,” said Moss.

He added that the deal would allow the firm to be closer to many of its customers in continental Europe.