UK: Infrastructure manager Network Rail purchased the assets of Hydrex Equipment (UK) Ltd's rail division from administrator KPMG on November 17.
Noting that Hydrex is a key supplier of on-track plant, Network Rail said the purchase would ensure business continuity and 'brings to an end an extended period of uncertainty for Hydrex's employees, customers and suppliers'.
More than 300 road-rail vehicles and 531 rail division staff will transfer to Network Rail (NDS-Plant) Ltd, a new subsidiary, but the remaining contracting and plant divisions will be wound down.
Discussions were held with the Office for Rail Regulation, Rail Plant Association, contractors, other Hydrex customers and unions before the deal went ahead.
'This is not a step that Network Rail has taken lightly', said Martin Elwood, National Delivery Service director. 'Our priority in making this purchase is to ensure continuity of works. Once we have set in place a successful transition we will seek input from across the industry, including other on-track plant suppliers, about any impact on the marketplace.'