Professional Engineering

Laid-off staff return to Scottish manufacturer

Upturn in fortunes for Glasgow's APG sees redundant workers return as demand for their skills increases

  • Published in News.

Anderson Precision Gearing has rehired former workers

More than 30 staff who had been made redundant by a Glasgow manufacturer have returned to the company following an improvement in its fortunes and contract wins with London Underground.

Anderson Precision Gearing (APG) faced liquidation in October 2010 until Pailton Engineering Group acquired the company two months later. Since the acquisition, Pailton has invested £2million in the company to upgrade equipment and increase quality and turnaround times. It has also won back skilled and experienced staff who had been laid off.

Just 13 staff remained in employment at the time of the Pailton deal but over the course of 2011, 33 ex-employees have returned to the company. John Nollett, group managing director at Pailton, said: “It was fairly straightforward. We could see a great future for the business.”

The company has recently been awarded a contract to manufacture suspension tubes that will help extend the life of the fleet of trains on the Piccadilly line.

The contract will run from early 2012 to 2013 and will help keep the existing fleet running up to 2022. Clive Brimmell, sales manager, APG, said: “We are delighted to have won this prestigious contract. Rail is an important market for APG and we look forward to expanding our operations in that area.”

He added: “We told the staff that remained our plans and our strategy so they had a clear picture of where we were going.”

These staff then contacted those who had been let go to explain that the company was growing and needed more employees with their skills.

But the initial response from the ex-employees was not positive. “They thought the company had been badly managed, had no future and would never make money,” explained Nollett. Most of them had new jobs, but the remaining staff told them the situation had changed, he said.

He went on: “We had to do it because we know how difficult it can be to recruit good people.”

Over the past three months APG has received orders of more than £1.3 million from a range of customers. Areas where the company is winning new business include rail, heavy automotive, mining, oil and gas and specialist engineered components.

The company is now looking for new premises in the local area to accommodate it as it grows. APG has been manufacturing on its current site since 1899.

The acquisition of APG has allowed Coventry-based Pailton to expand into growing markets such as renewable energy and rail.