Sacked workers have picketed the plant for more than two years

As the company re-opens under a new name, BBC Wales' Business Correspondent Gareth Jones analyses the situation.

What's been happening recently with Friction Dynamics?

Two weeks ago Friction Dynamics was forced into administration.

The company ran out of money and Craig Smith then sacked the remaining 93 workers.

Since then a new entity called Dynamex Friction has taken on several dozen workers with a view to restarting production on the site using the existing plant.

It appears to be a complicated picture.

It does. Craig Smith owns the site. At least some of the assets of the old Friction Dynamics have been bought by companies connected with him or his family.

Mr Smith owns the site and the new company is thought to be paying him �25,000 a month in rent.

The new company is run by Marc Jones, a former manager at the Friction Dynamics plant.

Local politicians are unhappy with what's happened there. What do they want?

The MP for Caernarfon and Assembly Member Alun Ffred Jones are calling on the Department of Trade and Industry to look into the affair.

They are particularly concerned about how Mr Smith has managed to divest himself of the old company and in the process avoided paying money to workers he sacked two and half years ago.

They won an industrial tribunal case and were awarded compensation.

They also want the Welsh Assembly Government to investigate what happened to around a �1m grant paid to the company in 1999.