Global Fastener News

Administrators Take Over UK Bolt Manufacturer Armstrong

John Wolz

Administrators took over UK bolt manufacturer Armstrong Fastening Systems Monday. Armstrong and other auto parts subsidiaries of the Caparo Group were forced into bankruptcy by pension fund deficits, receivers PwC announced.

Armstrong is the UK Helicoil licensee. Armstrong reported “breakeven” finances for 2005 and the elimination of pension liability makes the subsidiary more attractive for potential buyers.
Caparo Group has separate financial affairs and continues to trade normally, according to a Reuters report.

Armstrong Fastening Technologies reported 2005 sales of �25 million (US$43.7 million) and employs 330.
Also filing for bankruptcy were subsidiaries Armstrong Fastening Systems, an aerospace fastener manufacturer with 50 employees, and Willenhall Manufacturing Ltd., which produces metal pressings for the automotive market and employs 100.

Armstrong pensions had been scaled back since 2002 but obligations remain for previous employees.
Calling in the administrator may relieve Armstrong of pension liability for 3,000 employees. Pension participants may now be able to qualify for the British government’s Financial Assistance Scheme, which was designed to protect people prior to the Pension Protection Fund.

Caparo Group CEO Angad Paul told reporter James Daley of the UK Independent newspaper that it is a “bizarre world when a pension fund can access government subsidy only by closing down a successful firm and damaging its suppliers. This could not have been the intention behind the FAS. ”
Only 4% of the pension recipients will benefit while bankruptcy threatens the jobs of 450 employees, Paul warned. Web: armstrongfastenings.co.uk �2006 FastenerNews.com