Machine tool firm buys Polish plant

The company, based in Heckmondwike, West Yorkshire, has signed an agreement to acquire a machine tool manufacturing facility in Tarnow, Poland, which has 195 staff, for 1m euros.

The deal is subject to regulatory approval by the Polish courts. The Tarnow facility formerly carried out civil production activities within a subsidiary of ZMT, which is part of Bumar Group, Poland's largest state-owned defence business.

The 600 Group said the acquisition would help it to penetrate the fast-growing Polish education sector. David Norman, the company's chief executive, said: "This is an important step forward for 600 Group. It fundamentally changes our machine tools business model, with the facility in Tarnow combining with our UK factories to give an EU manufacturing footprint capable of servicing the requirements of our international sales organisation with lead time and quality benefits for our customers."

Once the new facility has been integrated, Mr Norman said he expected to see a significant shortening of the supply chain which would reduce the working capital requirements of the group.

He added: "We also see the potential benefits of having a skilled workforce able to manufacture products which will complement our activities in the precision components area as well as machine tools.

"We also believe the Central and Eastern European markets will become strategically more important for the group."