A specialist engineering business employing 26 in Caithness has been bought out of administration three weeks after it went under, with all jobs saved.
Mowat Technical & Design Services (MTDS), founded in 1997 by engineer James Mowat, has been bought from administrators RSM Tenon by one of its customers, Aberdeen-based Enterprise Engineering Services, in a quickfire deal that rescues employment vital to the local economy.
MTDS, based near Dounreay, designs, commissions, fabricates and installs components for the oil and gas, renewables and nuclear industries and clients include Wood Group, Maersk, Atkins, SSE, Amec and Babcock.
It ran into difficulties after trying to fund the development of an innovative hydro-based turbine out of working capital.
Iain Fraser, joint administrator at RSM Tenon, said the business and assets had been sold for an undisclosed sum. "There was a lot of interest in MTDS and it is great news for all concerned. The deal is an excellent fit for both companies and we are particularly pleased to have secured the deal so quickly and that all remaining jobs will be saved," he said.
He added the innovative hydro-based renewable power system developed by MTDS had considerable commercial potential. "However the intellectual property developed thus far is not included in the deal and remains available for sale."
Enterprise Engineering Services (EES) employs 180 and has invested more than £250,000 since a management buyout three years ago.
It provides services from design, fabrication and assembly through to installation and inspection, operating across the UK and internationally in the oil and gas, renewables, hydro and utilities sectors.
All staff will now transfer with immediate effect.
Andy Scott, managing director of EES, said: "EES has an established relationship with MTDS, having subcontracted work to the firm for a number of years.
"However, it has always been our longer- term strategic aim to bring these design services in-house. The acquisition of MTDS provides a streamlined solution for this."
He said there was a "distinct synergy" between the organisations which shared many of the same blue-chip clients.
The MTDS name will be retained and EES is com-mitted to retaining the local manufacturing and office base.
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