A SCOTTISH foundry, which manufactures high specification castings for the automotive and other industries, has been tipped for a bright future after it was bought out by two long-serving senior managers.
Anderson Stewart of Beith, which owns the last foundry of its type in Scotland, has been acquired in a multi-million deal by engineers Allan Brese and Graham Ross.
Prestwick's Precision Tooling, a manufacturer of machined components for the aerospace, automotive, renewables and oil and gas industries, is included in the buyout, which was backed by Royal Bank of Scotland.
Mr Brese established Precision with another partner 30 years ago, before it was sold to John Corrigan, 12 years ago.
The two companies, which employ 125 staff in total and are based 25 miles apart, have been under the same ownership and worked closely together since.
Mr Ross has worked with Mr Brese since becoming his first apprentice 30 years ago, before rising to the management team 12 years ago. He believes the companies have strong growth potential.
Mr Ross, who was unable to provide a steer on the value of the deal, said: "We had spoken about doing a buyout for a number of months/years and that's basically what we have done.
"The business, as far as we were concerned, wasn't going that far, and we had a few opportunities that we could potentially have exploited if we had the business.
"We've purchased the business - myself and Allan Brese now own Anderson Stewart Castings and Precision Tooling Services."
Anderson Stewart owns what is believed to be the last industrial investment castings foundry in Scotland. The techniques it employs are used to manufacture highly refined, accurate castings that take away the requirement for high-costing machining.
With only a "handful" of investment casting foundries is still in operation across the UK, Mr Ross said there is a big market for the businesses to go for.
"It would be that market we would like to exploit through the castings, and through the castings brings machining work also for Precision Tooling Services," he added.
At present the foundry derives 40 per cent of its business from the automotive industry, where its high-profile clients include BMW. One client, Cummins Turbo Technologies, a high-end manufacturer of turbochargers, accounts for 50 per cent of business across the two companies.
Other sectors engaged in by the businesses are aerospace, where clients include Airbus, and Spirit Aerostructure Europe, for which it handles tooling work.
The owners have also highlighted the oil and gas, renewables and railway sectors as areas of growth.
Part of the expansion plans include the development of an apprenticeship programme, likely to focus on its facility in Beith where it hopes to teach investment casting as part of day-release courses.
Mr Ross said the group would also like to boost its headcount, perhaps by expanding its facilities in Beith and Prestwick of demand dictates.
"It is our intention to grow the business to such a size that we would probably need to such a size that we would probably need to extend both sites. I would say, rather than a new facility, it would be an extension to the builds that are already there."
The engineer said the decline of investment casting foundries has mirrored the steady erosion of heavy industry in Scotland in recent decades.
He said: "There may have been seven, eight, nine or 10 in Scotland at one time, and they have just diminished into one, basically. We have been in a fortunate position over the years to have a loyal customer base that's kept the foundry going.
"Most of this market is either in eastern Europe or the likes of China."
The funding from RBS has come in two tranches of loans, part of which is an invoice discount facility.
RBS relationship director Alan Poole said: "Graham and Allan have helped make Precision Tooling one of the most respected businesses in their sector.
"Manufacturing and technology is an important industry in Scotland and one that the RBS is keen to support.
"We're delighted to have helped Precision Tooling as it continues to grow."
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