LDV vans saved with £5million loan

Black Country suppliers to van maker LDV have spoken of their relief after the firm was saved from going into administration with a £5million loan.

This will enable Malaysian firm Weststar to complete a takeover.

The decision to provide the loan to rescue the struggling Birmingham company raises fresh hopes of continued business for a number of suppliers in the area.

They rely on business from the Washwood Heath-based firm, which has not produced a van since December because of a slump in orders.

If it had gone into administration the plant faced closure, endangering more jobs in its sales network and with suppliers.

Black Country Pressings in Darlaston Road, on the Darlaston and Wednesbury border, has been a supplier of press parts and brackets to LDV.

The company employs 12 staff, having lost eight over the last six months, with two forced onto short-time since the van firm hit trouble.

Director Dave Gill said: "For the area as a whole it will be a big boost.

"We are a small company and have quite a lot of business with LDV. We are not sure how the situation will impact on us at the moment but it should help us."

R & M Metal Finishing, based in the Old Forge Trading Estate in Dudley Road, Lye, relies upon LDV for around 12 per cent of its work.

Director Mark Rogers said the news that LDV had been saved from going into administration could only be a positive thing.

His firm are experts in finishing and painting parts for vehicles.

He admitted that work "dried up over night" when LDV collapsed but is now hopeful the orders will come flooding back in.

He said: "LDV made up about 12 per cent of our orders so it had a real impact on us.

"I think the work will return to us now but not immediately.

"It will take time for the production to filter down to us but it's looking very positive."