Network Rail buys Plant company

[ole man]

Network rail have announced they have bought rail plant company Hydrex with immediate effect from administrators KPMG

 

[WatcherZero]

Its possibly spotted a bargain, the company has something like 300 road-rail machines which would come in very useful for their maintence/renewals.

 

[swt_passenger]

They had to buy it surely? If Hydrex's machines were suddenly not available a massive chunk of the planned engineering work couldn't get done. Many of the big names don't provide their own RRVs, it's mostly subcontracting.

Anyone know roughly what proportion of the wider RRV fleet was owned and operated by Hydrex?

 

[jimmymc]

Hydrex are the biggest supplier although i dont know the exact figures. they do hav 300 rrv's i think quattro are second but dont know how many?. There are lots of smaller companies including the one i work for with anything from 6 to something like 16 rrv's who currently do a lot of good work for network rail and its sub-contractors. Its reported in press releases by network rail that they have saved 500+ jobs by making this move. I know for a fact that these smaller companies will not see it that way? my own feeling is that in comeing months we will all be looking for work . It all stinks a little bit from my point of view, as it was only this year that network rail in scotland had a fall out with hydrex scotland over transportation charges. hydrex hit network rail with a massive bill for just one months transport making network rail cease using their services immediatley and useing the smaller companys here instead which continues to this day. I have been working for a smaller company doing the work hydrex lost since . im pretty certain i will not be doing it for much longer. which i hope you will understand grates a little!. the staff who put hydrex in the position its in at the moment are being transfered over too network rail now . good luck to them!

Jimmy

 

[route:oxford]

They would have been daft not to buy it at a knock down price from the administrators.

The administrators would, of course, have marketed the firm to a fairly broad audience.

 

[ole man]

Only the rail staff will be keeping there jobs(for now), there will be hundreds of non rail staff that are to be laid off with immediate effect.

 

[Ploughman]

Jarvis used to have a number of machines in its Road Rail fleet.
These were taken over by Hydrex a few years back with the operators transferring over.
I wonder if these guys feel lucky for the second time?

 

[jimmymc]

There are 110 people who are classed as non-rail and they lost their jobs yesterday. The 500+ rail staff have all been taken on by network rail. I also do not see how taking on £40m of debt is a "knockdown price" . There are also 50 RRV's which are due updateing to current 1530 standard next year. At a price of £30k+ each, again not a bargain in my eyes.

 

[ole man]

i do know some people who knew this was happening and bailed out before, so it can't of been a surprise

 

[WatcherZero]

The company was worth £106m in 2006, if NR is buying it out of administration its likely a lot of the companies debt has been written off. Cant find anywhere how much NR has paid for the 3/4 of the company. Have found the new name will be 'Network Rail (NDS-Plant)'.

 

[ole man]

Official Company Statement







NETWORK RAIL PURCHASE OF HYDREX RAIL



Network Rail Infrastructure Limited has today completed purchase of the assets of the rail division of Hydrex Equipment (UK) Ltd from its administrators, KPMG LLP. The purchase includes a transfer of employment for all rail division staff.



Hydrex’s remaining contracting and plant divisions are being wound down with 117 staff being made redundant. A small number of staff will be retained to assist the administrators with the rundown of the plant services division.



Hydrex is the largest provider of road-rail vehicles to the rail industry and a key supplier to Network Rail and its infrastructure contractors. Network Rail’s purchase of the rail division of Hydrex business brings to an end an extended period of uncertainty for Hydrex’s employees, customers and suppliers, while providing continuity of business for the supply of heavy plant to the industry.



Martin Elwood, director of Network Rail’s National Delivery Service, said: “This is not a step that Network Rail has taken lightly. The purchase of Hydrex’s rail division has secured hundreds of jobs while making sure we can deliver as planned our programme of maintenance, renewals and enhancements across the rail network.



“Our priority in making this purchase is to ensure continuity of works. Once we have set in place a successful transition we will seek input from across the industry, including other on-track plant suppliers, about any impact on the market place.”



ENDS



Press Contacts:

Will Jones - Communications Manager - Hydrex

Tel: 07525 235 022

Email: [email protected]



Russell Spink - Media Relations Manager - Network Rail

Tel: 020 3356 9527

Email: [email protected]

 

[jimmymc]

The company was worth £106m in 2006, if NR is buying it out of administration its likely a lot of the companies debt has been written off. Cant find anywhere how much NR has paid for the 3/4 of the company. Have found the new name will be 'Network Rail (NDS-Plant)'.

They bought it for £1 and are taking on the £40m debt i am led to believe.

 

[Nym]

£40m debt to network rail isn't even a drop in the ocean though, considering both the amount of debt they already have, and the value of all their assets...

 

[WatcherZero]

£40m for a £100m+ company, indeed a bargain.

 

[hantsman1205]

A friend of mine has just been laid off, been told he can't even drive his van as there is no insurance.

 

[jimmymc]

£40m for a £100m+ company, indeed a bargain.

£100m+ in 2006. it is probably worth the same as its debt now. 30+ brand new liebherr road railers parked up for the best part of a year, serious drop in hourly rate almost £30 per hour knocked of the rate since 2006. drivers wages stayed the same throughout, some even getting more. since 2006 hydrex operators in scotland have been given a fuel card aswell as travelling expenses to go with there company van. not the same company by a long shot as it was when it was worth £100m+ in 2006. and it will cause network rail no end of bother i can asure you of that.

 

[Tin Rocket]

were Hydrex part of HSS hire?