The Welsh Government has stepped in to purchase a closure-threatened factory in north Powys, paving the way for an automobile parts manufacturer to take over.

The site in Llanfyllin, formerly occupied by Stadco, has been taken over by Coventry-based manufacturer Marrill Group Ltd.

The former owner of the plant, Stadco, has decided to consolidate its operations elsewhere in the UK, having announced in October 2020 that the Llanfyllin factory would be closing.

The takeover secures 102 jobs, as well as future expansion opportunities for the site, according to an announcement on February 2 by Economy Minister Vaughan Gething.

He said: “The Welsh Government is determined to help create high-quality jobs across Wales and so I’m pleased we’ve been able to step in and help secure 102 high quality jobs in Llanfyllin.

“The loss of this facility would have had an adverse impact not only on the town itself but also on local supply chains and surrounding rural communities. As soon as we became aware of Stadco’s intention to close the site, we looked for a solution that would help retain these high-quality jobs in the town.

“Marrill are making a significant capital investment to acquire the business and necessary investments into the activity at Llanfyllin. I’m very pleased to say the Welsh Government and Development Bank will play a crucial role expanding operations, which will help create more new jobs.

“I also applaud the company’s green credentials; with a new 2,500t press being installed into the Llanfyllin site, the company will be able inshore work from the continent.”

Jason Philips, managing director at Marrill Group Ltd, said: “It has taken 18 months of hard work and negotiation to finalise this acquisition. With the combined efforts and support from the Welsh Government and Development Bank Wales, we are delighted with the final outcome.

“It is a tremendous achievement, especially considering how the pandemic has stressed the manufacturing economy over the last 2 years.”

The company has secured a seven figure loan facility from the Development Bank of Wales and an offer of non-payable finance of £700,000 from the Welsh Government towards planned capital investment in new machinery, which will support the creation of new jobs at the facility.

Rhodri Evans, a deputy fund manager with the Development Bank of Wales, said: “The Marrill Group is a well-established business with a highly experienced management team who are committed to growing the business from their new site in Powys.

“We’ve worked closely with our colleagues in the Welsh Government to secure this important investment for mid-Wales; providing the funding to help purchase the business and invest in new equipment, safeguarding jobs and creating opportunity for future growth.”