The region’s manufacturing sector was left reeling when Zentia – the UK’s only suspended-ceiling plant – called in administrators after 101 years of trading
The Zentia factories have been saved after being bought by new owners (Image: Prosista)
Two Gateshead factories which shut their doors when their parent company collapsed into administration, resulting in the loss of 170 jobs, are poised to reopen following a multimillion-pound deal. The region’s manufacturing sector was dealt a significant blow when Zentia – the UK’s sole suspended-ceiling plant – appointed administrators at Interpath in June, bringing an end to 101 years of trading.
The company, a former North East Business Award winner, employed a substantial workforce across its two Team Valley sites, producing suspended ceilings for customers throughout the UK. Within weeks, however, documents lodged by the administrators revealed they were in negotiations with a prospective buyer for the business.
Now, a multimillion-pound deal has secured a new future for both factories – raising hopes that a significant number of jobs can be created, including the re-hiring of former employees who had previously been made redundant.
UK law firm RFB Legal advised Turkish ceiling manufacturer Prosista on its acquisition of Zentia’s factories and manufacturing assets, following Zentia’s administration in June amid soaring energy costs and declining sales.
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.
Inside one of the Zentia sites in Gateshead(Image: Zentia)
The transaction was completed against a demanding deadline, with Zentia’s administration requiring RFB Legal to coordinate negotiations with multiple parties while addressing issues involving the property and remaining employees, reports Chronicle Live.
The deal was spearheaded by RFB Legal Senior Partner Deniz Oguzkanli and Corporate Partner John Andrews, with Employment Law Partner Adam Pavey, Samuel Glasgow, Jasmine Azaei and Gauri Dalvi also providing counsel on the acquisition.
Mr 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.
“With so many different aspects to the deal, our teams needed to work closely together to make sure nothing was overlooked. Our priority was to protect our client’s interests while getting the acquisition completed within a demanding timeframe.”
Prosista ranks amongst Turkey’s foremost ceiling manufacturers, serving both domestic and overseas markets, with the takeover enabling 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.”
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