Eleco Timber Frame sold

Liverpool-based Eleco Timber Frame has been sold by its owner because of continual losses incurred by the business.

The Liverpool-based company has been sold to one of its customers for an undisclosed sum.

“Recent times have seen the closure of or withdrawal from many well-known construction businesses and it was with regret that Eleco announced today the divestment of its loss-making timber frame business in Liverpool,” Eleco said.

“However, although Eleco will no longer design and manufacture timber frame products at Speke, it will continue to manufacture acoustic floor and partition products at its Yaxley, Suffolk factory under the Stramit Panel Products brand.”

Eleco plc, which also runs the Gang-Nail Systems business, said the divestment of the timber frame businesses was in accordance with reducing its financial risk exposure to loss-making interests.

Eleco’s interim results published in March show Eleco Timber Frame recording a £400,000 loss for the six months ended December 31, though a spokesperson said recent losses were higher.

Eleco’s timber frame product differed from that of rivals in using nail plates instead of nails to connect timber sections.