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MULTI-MILLION POUND DEAL SEES FUTURE OF FIRM SECURE

The future of ATB Laurence Scott and 185 jobs have been secured in a multi-million pound land deal.

The future of one of Norwich's best known businesses and 185 jobs have been secured in a multi-million pound land deal.

Engineering firm ATB Laurence Scott has "taken control of its own destiny" by buying its factory in Hardy Road from its old parent company, FKI.

The purchase of the "Gothic Works" - the biggest industrial property deal in the city in recent times - lifts a cloud of uncertainty from Laurence Scott, which had been operating from the site on a short-term lease.

It also the latest step in the revival of the firm, which saw administrators called in two years ago when its former owners hit cash-flow problems.

But since being bought by Austrian conglomerate ATB, Laurence Scott has seen sales double to £21m and profits top £1.6m.

The workforce has also grown from 120 in mid-2007 to 185 as production has increased.

New jobs are expected to follow next year, taking the workforce to 194.

Ian Atkins, MD at Laurence Scott
Managing director Ian Atkins said a number of options had been considered for the future of the business - including moving to a factory outside the city, or relocating to the old Bowater Home Improvements factory at the Sweetbriar Industrial Estate.

ATB looked at one stage at moving operations to a factory elsewhere in Europe.

But Mr Atkins said: "The successful conclusion of the purchase of the Gothic Works is another milestone in the renaissance of the Laurence Scott business.

"After being very vulnerable with only short-term tenure at our historic site, the business now controls its own destiny again.

"We are keen to keep the business in Norwich, principally because of our dedicated and skilled workforce. Despite strong export sales from the energy sector throughout the world and having a full order book for the next 12 months, raising capital is not easy at present and we were faced with some difficult negotiations to buy the property back.

"However, our bank was supportive, reflecting the strength of the business and the long-term potential of this site."

Mr Atkins revealed that talks to buy the 10-acre Gothic Works from the FKI pension fund took 18 months to complete.

Norwich City Football Clubs owns the land where Laurence Scott's testing facility stands next to the main factory - and has offered the firm a five year extension to the lease.

The turnaround in the firm's fortunes in the last two years has also seen Laurence Scott restart its apprenticeship scheme and press ahead with the £2.5m purchase of a new test facility, which is planned to start operating early next year.

ATB Laurence Scott - formerly Laurence Scott Electromotors - is one of the oldest manufacturers in Norwich, and started work in the city in 1883, building large electric motors for the oil and gas industries.

James Allen of Roche, which acted for ATB in the deal, said: "The purchase represents, without doubt, the largest industrial transaction in Norwich for a while. It has enormous impact in providing certainty for the business, its staff and customers."