Administrators had warned the site could be closed

Administrators were called in at the Friction Dynamics plant last week - and warned it would have to be closed down unless the company could be sold as a growing concern.

The Carnaerfon factory is the scene of one of the UK's current longest-running industrial disputes.

The successful bid was made by Dynamex Friction Limited - it is not clear who owns this new firm.

However administrators said on Friday that many of the firm's assets had been sold to companies connected to Friction Dynamics owner Craig Smith.

The new company Dynamex Friction Limited is expected to create 62 jobs.

Last week, the 93 staff who were working at the plant heard they had lost their jobs after American factory owner Craig Smith said the company lost �4m in six years.

The announcement followed years of high-profile turmoil at the factory.

The industrial dispute began in April 2001 over pay and conditions

In April 2001, workers went on strike over pay and conditions, and 86 members of staff were sacked eight weeks later.

Last year, an employment tribunal decided the staff had been unfairly dismissed and were entitled to compensation, but Mr Smith launched an appeal against the ruling.

His case was due to be heard in London in November.

But sacked workers, who are still picketing on the site, fear they will now not receive a penny in compensation from him.

Profits

The administrators met representatives of the Transport and General Workers Union (T&G) on Tuesday, and warned the company's assets could be sold off.

But these assets do not include the factory site itself, which is owned by another company called Ferotec Reality, also owned by Friction Dynamics chief Craig Smith.

Unfairly-dismissed workers are still picketing at the site

According to the T&G north Wales representative, Tom Jones, there is therefore nothing to prevent Mr Smith from profiting from the site by either selling or leasing the factory to another company.

Mr Jones added the situation highlighted the need for a change in the law in such circumstances.

A fortnight before Friction Dynamics was put into administration, a new company called Friction Dynamex was set up by a former factory manager at the Caernarfon site, Mark Jones.

Mr Jones is considering the possibility of restarting production at the factory.