Scots firm in running to take over troubled Cemtron

Published on Saturday 11 October 2008 00:34

LIVINGSTON-based Component Sense has revealed it plans to make a bid for a part of troubled engineering firm Cemtron, which fell into the hands of administrators earlier this week.

The sale of Cemtron would secure more than 150 jobs at the firm – mainly based at its Dalgety Bay headquarters. Cemtron also has a supply chain office and logistics operation in Hong Kong.

Component Sense, which distributes electronic components across the world and boasts a global turnover of more than 10 million, told The Scotsman it had initially approached Cemtron to offer funding support around a year ago.

But "slow take up" on the part of the management of Cemtron, which acquired the firm in a management buyout in 2005, meant no agreement was reached, Component Sense has claimed.

Cemtron, which was founded eight years ago, was taken into the hands of administrator Tenon on Wednesday, citing trading losses, cash flow and funding difficulties.

Tom Maclennan, joint administrator at Tenon, said earlier this week that he hoped to find a buyer for the business, which he described as a firm with "considerable potential for further growth".

Component Sense's business development manager, David Morgan, told The Scotsman: "We have been trying to get involved with this company for a long time, but the management was slow to take up our offer.

"We would like to take control of part of Cemtron at least – we think that over a period of time, we could probably invest around 1.6m in it. We are looking to inject money into the bottom line."

Component Sense has three offices, in Scotland, the US and Australia. It is understood the firm would be willing to take on around a fifth of Cemtron's business through the acquisition of the procurement division and any redundant stock the firm may have.

A spokesman for Tenon said: "We will consider all offers for Cemtron."