New Indian owner of UK firm assures unions of no job cuts

LONDON: The new Indian owner of a Leicestershire-based engineering company has promised local unions that no jobs will be cut after the takeover and announced plans to set up a plant in India.

Metzeler Automotive Profile Systems UK, based in Coalville, has been acquired by the Ruia Group for an undisclosed sum from the CVC Capital Partners.

The group, however, said that about 6 million pounds of the price had come from a loan by the State Bank of India. As part of the deal, the company has changed its name to Schlegel Automotive UK.

The company, which employs 452 people, is the UK's second largest supplier of specialist rubber vehicle sealing systems for the automotive industry. Ruia said it plans to expand the factory as part of a 3 million pounds investment.

Ruia also announced that it will spend 7.5 million pounds to set up a Schlegel operation in India. Paresh Patel, East Midlands industrial organiser for the Unite union, which has about 300 members in the company, said he was pleased the deal had brought an end to uncertainty about the site.

"From a company that was looking for a buyer a year ago, to having found a buyer, clearly it brings an element of security to the site," he told the local media.

"At the moment, we are still in negotiations with the company to try to iron out some issues and to find out what impact the ownership will have on our members. But we have been told by the company that it's business is usual and no jobs will be cut."

Schlegel has customers in UK, Europe and South Africa. The company made a turnover of 28.3 million pounds in 2006.

Founded in 1952, Schlegel's rubber-based sealing systems used in doors, windows, bonnets, boots and sunroofs of cars are used by Ford, Toyota, Nissan, Honda, BMW, Saab.