Two Gateshead factories that shut when parent company Zentia collapsed into administration, costing 170 jobs, are poised to reopen after a multimillion-pound deal. Turkish ceiling manufacturer Prosista has acquired the factories and manufacturing assets, raising hopes that a significant number of jobs can be created, including the re-hiring of former employees.
Administration and the fight to save a UK manufacturing icon
Zentia, the UK's sole suspended-ceiling plant and a former North East Business Award winner, appointed administrators at Interpath in June after 101 years of trading. The company employed a substantial workforce across its two Team Valley sites, producing suspended ceilings for customers throughout the UK. Within weeks, documents lodged by the administrators revealed negotiations with a prospective buyer.
Had Prosista not stepped in, the UK would have lost its only suspended-ceiling factory, ending decades of UK exports and leaving the country entirely dependent on imports. The deal encompasses manufacturing premises, machinery, stock and intellectual property, with Prosista already recruiting former workers and outlining plans to create in excess of 100 jobs at the site.
Legal team navigates a demanding deadline
UK law firm RFB Legal advised Prosista on the acquisition, which followed Zentia's administration amid soaring energy costs and declining sales. The transaction was completed against a demanding deadline, with RFB Legal coordinating negotiations with multiple parties while addressing issues involving the property and remaining employees.
RFB Legal Senior Partner Deniz Oguzkanli said: "This is a welcome investment in British manufacturing and an opportunity to bring more jobs back to Gateshead, and it's encouraging to see an international manufacturer recognise the potential of these facilities and plan further investment in the area. Buying from administrators meant dealing with several parties, all with different interests, while making sure our client was protected from risks connected to the previous business."
Prosista plans new product ranges and local jobs
Prosista ranks amongst Turkey's foremost ceiling manufacturers, serving both domestic and overseas markets. The takeover enables the firm to broaden its product portfolio through Zentia's established manufacturing sites.
Mehmet Lacin, director at Prosista, said: "There's a great deal of history behind these factories, and we want to build on the skills and manufacturing experience developed in Gateshead over so many years rather than see them disappear. By combining our expertise in metal ceilings with the mineral ceiling and acoustic products made in Gateshead, we can develop new product ranges while investing in the facilities and creating more opportunities for local workers."
