New owners in pledge over Lister jobs (From Gazette Series)

New owners in pledge over Lister jobs

AFTER weeks of speculation and uncertainty the deal to sell Dursley's largest employer has been finally completed.

Lister Petter employees were informed of the sale of the business - in two parts - on Friday and were also assured of the commitment by both parties to the continuation of operations in Dursley.

Deutz UK, the British arm of the German engine manufacturer, has acquired the X-series engines,

A British-led consortium backed by IIH, an engineering investment fund, acquired the remaining part of the Lister Petter UK business and will run the new company under the name Lister Petter Ltd.

Speaking exclusively to the Gazette, spokesman for the new company Bryan Draper confirmed there would be no job losses among the 260 workforce.

"The management of the Dursley site will remain in place under existing general manager Paul Townson," he stated.

It is reported that in the announcement made to staff, attended by Stroud MP David Drew, Mr Draper said existing chief executive Bonnie Dean would not be going forward with the new company.

Lister Petter Ltd will begin with a clean slate, having acquired only the fixed assets and stock of Lister Petter UK and no creditors.

Mr Draper said the new company has a lot to do to stabilise the business and that the next three months would be hard.

"We do have some bridges to build," he said. "Not least with the employees who have taken a pretty hard knock.

As reported last week, employees were devastated to discover a £10 million deficit in the company's pension fund meant they would only receive ten to 20 percent of their expectations on retirement.

Mr Draper said the liabilities in the pension fund were too big for anybody taking over a business the size of Lister Petter to absorb.

"We are very conscious of the impact this announcement has on the workforce," he added. "But it is our intention, and that of Deutz UK, to try to look at a way of softening the blow."

Mr Draper said employees have been supportive of the take-over and that many were on site putting on overtime on Saturday and Sunday following the announcement.

"We are excited because the core business has always been profitable," he stated. "The order book is 40 percent up on this time last year."

Although Deutz UK has acquired the X-series, Lister Petter Ltd will have a limited licence to sell the engines once they are completed.

Mr Draper explained: "A new engine project is expensive and needs a company the size of Deutz UK to complete the project. The company will invest the £6 million to complete the project."

He added that the consortium was aware of the importance of Lister Petter in Dursley.

"While Lister Petter is a global company, its routes and core business are firmly established in Dursley," he said. "Once we are finished with pension issues the first thing we will be doing is to submit plans and do a deal with the developers of the site."

Managing director of Deutz UK Bob Bell was equally optimistic about the future.

"I am really enthusiastic about his," he said. "Deutz now has an extremely good team of world class engineers in Dursley."

He added the company wanted a research and development centre in Britain and the former Lister technical centre, and the 30 engineers and technicians will become this centre.

"We want to turn this centre into a showpiece for engine development. I am very positive about this and the knowledge ad expertise the new employees will bring will bring a long term benefit, and different style of engineering, to Deutz UK."

He added the company has a strong commitment to Dursley.

"We would not employ people if we did not have a commitment to them and there will be no job losses in Dursley."