A historic Dundee factory that employs nearly 60 staff is expected to be saved from closure for the second time in a matter of weeks.
Last week The Courier revealed Bonar Yarns was on the brink of closing due to energy costs understood to be in the region of £300,000 a month.
It was previously threatened with closure when it collapsed into administration in April before it was rescued by American-based firm Newman Yarns, which is run by John Newman.
Mr Newman also owns Elite Turf USA, a former customer of Bonar Yarns.
Based at Caldrum Works on St Salvador Street, the business specialises in polypropylene carpet backing yarns.
‘No stone unturned’ and £1m invested
However, last week the firm’s future was plunged into uncertainty.
Workers were told the firm would be unable to produce its products at a competitive price unless energy costs reduced.
Newman Yarns chief executive Andy Sones revealed the firm had invested £1 million into the Dundee business.
But he also said the company was forced to turn off its machines as it could not afford to power them.
Mr Sones also vowed to leave “no stone unturned” in the fight to save the business.
A way forward for Bonar Yarns
Now, The Courier understands the firm has struck a deal with energy providers that will prevent it from closing.
Mr Sones, who is also chief executive of Elite Turf USA, said: “Thanks to the efforts of our staff, and the assistance of Unite and our MP, we have managed to negotiate a viable energy supply.
“We believe it enables us to move forward and continue to run the factory.
“It’s not exactly where we need to be. But we believe we can trim usage, work more efficiently and stop the closure.”
Mr Newman is due to deliver the news to staff when he visits the factory on Thursday.
Mr Sones added: “Although the challenges are not over, we are in a good place.”
He said the firm was committed to keeping jobs in Dundee.
Unite the union initially criticised the new owners. The union later hit out at “greedy” energy firms and committed to helping find a solution.
The union declined to comment on the latest development until after Thursday’s meeting.
Bonar Yarns in Dundee
Bonar Yarns can trace its history back to the foundation in 1903 of the famous Low & Bonar business that specialised in the manufacture of technical textiles.
In May 2020 Low & Bonar was delisted from the London Stock Exchange after a £107m sale to German firm Freudenberg.
The Dundee management team completed a deal to purchase the Bonar Yarns division.
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