More than two dozen jobs have been saved at a Wigan company after it was sold out of administration.
DMG Steelworks Limited, which is based at Pagefield Industrial Estate close to Wigan town centre, called in administrators CVR Global last week.
This resulted in Craig Povey and Richard Toone from the insolvency and restructuring experts were appointed joint administrators on July 14.
But the business has now been sold by CVR Global ina pre-pack deal meaning all 27 full-time jobs at the firm have been saved.
The company operates as a fabricator and erector within the rail, construction, highways and utilities industries.
It first commenced its operations in 1995 supplying specialist structures to the telecommunication and construction industries.
Since then, has expanded and diversified to include all types of structural steel fabrications and now specialises in the supply and installation of architectural steel structures, gantries, bridges and related products.
It is a specialist in bridges and contemporary steel buildings, incorporating a wide range of products such as balustrades, railings and radio masts.
The company was launched in 1995 and employs 27 full-time staff.
Craig Povey, of CVR Global, said: “The company was clearly insolvent on a cash-flow basis and was under pressure from creditors including its landlord and HMRC.
“Despite the difficulties previously faced by the business, it has a strong reputation and good order book. The sale ensures the survival of the business, preserves 27 jobs, and the company is now well placed to move forward.”
The good news comes as the country’s steel industry is in the midst of an ongoing crisis after Tata Steel but several of its UK operations up for sale.
The industry has been hit by a huge drop in the price of steel after the market was flooded with cheap steel from Asia.
But it is good news for Wigan which has seen a spike in its unemployment figures.
It was revealed last week that the number of redundancies caused by Morrisons in the town centre closing and other large employers making cutbacks had contributed to rise in people claiming unemployment in the town.