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More than 130 jobs saved by steel firm deal

More than 130 jobs have been saved after a new buyer agreed to take over a financially troubled South Yorkshire steel firm.

Rotherham based MTL Group collapsed into administration earlier this month following the loss of a large overseas defence contract, resulting in the loss of 157 jobs.

It was feared the rest of the 146 strong workforce at the metal manufacturing specialist would also be made redundant if no new buyer could be found. But engineering and fabrication company WEC Group has now agreed a deal for an undisclosed sum to take on the business.

Officials said that the deal would save 135 jobs. MTL Group's sales director Mr Karl Stewart, finance director Mr Howard Kellett and operations director Mr Darren Bradley remain in the senior management team following the creation of the new partnership with WEC Group.

Mr Wayne Wild, commercial director of WEC Group, said that “We are delighted to have reached an agreement which will save the jobs of more than 130 workers in South Yorkshire. The restructuring deal we have completed will see us work in partnership with MTL Group's previous directors and shareholders to grow and develop the business for the benefit of customers and staff. We are looking forward to continuing to work with the current customer base whilst securing new orders.”

Mr John Sumpton, joint administrator of MTL Group and executive director at EY, said that “We are pleased to have secured this deal for MTL Group, which safeguards the future of 135 employees and represents a strong strategic fit for WEC Group. The support of the business' loyal customer base was critical in enabling the company to continue trading, attract strong interest from a number of parties and, ultimately, deliver a rescue deal. A going concern sale represents the best outcome for the company's creditors.”