A NORTH Yorkshire manufacturing business has been sold to Swedish-owned plastics business Rosti A/S.

Injection moulding business McKechnie Engineered Plastics, which is based in Stamford Bridge and Pickering, was sold for £30.7 million by previous owners Alcester-based Melrose, which buys businesses to improve profitability and sell them on.

McKechnie Engineered Plastics Limited, trading as McKechnie Plastic Components (MPC), employs more than 650 people in its Yorkshire sites, as well as its metal fasteners facility in Swansea, and has a turnover of about £75 million.

The £240 million-turnover Rosti Group, which employs 2,500 people across seven countries, will call the new subsidiary Rosti McKechnie Ltd.

Borje Vernet, chief executive of Rosti, said: "The strategic fit between Rosti and McKechnie in terms of technical competences, culture and customers is impressive. The two companies share a common approach through developing value add solutions and providing high levels of customer service.

The injection moulding facilities at Stamford Bridge and Pickering in North Yorkshire, where McKechnie has a particular expertise in multi shot moulding, processing of PMMA (a type of acrylic glass) materials and drinks can widget manufacture, along with Canning Brett, and South Wales site, where it specialises in metal fabrications and fixings, will be incorporated into the European division of the Rosti Group, headed by chief operating officer Barry Coughlan.

Mr Coughlan added: "McKechnie has an outstanding reputation with a complimentary portfolio of products, services, customers and markets. We are extremely positive about the synergy between our businesses. Combining our resources will provide a platform for both UK and international growth with many of our global OEM partners."

Mike Murphy, sales and marketing director of Rosti McKechnie, said: "In partnership with our key strategic customers, McKechnie has enjoyed significant growth over the last four years. With our new owners Rosti we can continue on this journey and fulfil our future potential.”

Melrose bought MPC in May 2005, along with die cast manufacturer Dynacast, for £243.6 million. It said it had made £800 million on its initial investment.

Christopher Miller, chairman of Melrose, said: "MPC is the final piece of the successful Dynacast and McKechnie acquisition to be sold, it has performed well as part of the Melrose group and we wish the management team every success for the future.”