Alumasc sheds firms to focus on engineering

Alumasc is to sell several non-core operations as part of its strategy to focus on engineering and building-products businesses. The company has signed heads of agreement to sell one of the three divisions of its heat treatment business, Thermex Industries, and its plastics injection operation Arnold Plastics. Alumasc is also considering an offer for Crew […]

Alumasc is to sell several non-core operations as part of its strategy to focus on engineering and building-products businesses.

The company has signed heads of agreement to sell one of the three divisions of its heat treatment business, Thermex Industries, and its plastics injection operation Arnold Plastics.

Alumasc is also considering an offer for Crew Stainless, its stainless-steel sheet profiling company.

Chief executive John McCall said losses from the proposed disposals will result in a £9m provision, to be taken in this year’s full-year accounts.

The company’s annual results are due to be announced in September.

McCall said he hopes business at the group’s remaining automotive engineering operations, which supply parts to Rover’s new 75 model, will continue to improve.

The company has been hit hard by the downturn at Rover over the past 18 months.

The latest disposals follow other sales by Alumasc earlier this year.

In April it sold two non-core engineering businesses in the West Midlands. Wellings Forgings was bought by Woodcote Industries for £900,000, while a further £150,000 was raised from the sale of Alumasc Tubular Products, based in Rugeley, Staffordshire, to Cavendish Industries.