Century Engineering has taken over the assets and operations of Priority Engineering Services, and saved as many as 40 manufacturing jobs in the process.
The Adelaide Advertiser reports that the Adelaide-based Priority collapsed and went into receivership in March, despite previously vying for a number of new contracts that management had hoped would save it.
At the time of the collapse, management believed there was still a prospect of the site re-opening. As such, workers were advised not to go out looking for new jobs.
Adelaide-based Century Engineering provides general engineering, manufacturing and water use services in the Adelaide suburb of Beverley as well as in Sydney, Melbourne and Brisbane.
According to Century Managing director David Heaslip, Priority's customer base in the automotive, mining and defence sectors was attractive to Century even though those sectors are currently struggling.
"The company has a very good manufacturing capability and we believe there is sufficient work and future contract opportunities in the pipeline to keep the company operating in a viable manner,” he said.
"It is our intention to initially re-employ - where possible - up to 40 of Priority's former staff and our long-term goal is to rebuild the business to its former size."
Priority had a turnover of $19 million in its last full financial year of operation and employed about 86 workers at its Edinburgh North site. At this stage, 15 of those employees have returned to work.
According to State Manufacturing Minister Tom Kenyon, the acquisition will help transform the state’s manufacturing sector into a more technologically advanced industry.
"Adelaide's northern suburbs have a rich manufacturing history. So I'm pleased that this acquisition will see 40 jobs retained in a community that relies heavily on the industry," Mr Kenyon said.