A new company has taken over the factory

A new company has taken over the troubled Friction Dynamics plant in Caernarfon where sacked staff have been picketing in a row over pay and conditions for more than two years.

The plant was put in the hands of the administrators two weeks ago, and on Monday a new company called Dynamex Friction took over.

A spokesman for the new owners said that some forty staff have been taken on an at the plant.

The firm says it plans to recruit 62 workers - about two thirds of the number employed there until two weeks ago.

Maintenance work was being carried out on Monday and production will resume on Tuesday.

Sacked workers have picketed the plant for more than two years

Two weeks ago, American-born owner Craig Smith told the workers they had lost their jobs after the company lost �4m in six years.

He warned that the company might have to close unless a buyer could be found - then the newly-created Dynamex Friction emerged at the end of last week.

Administrators have confirmed many of the original firm's assets have been sold to companies connected to Mr Smith.

Mr Smith has confirmed he is renting the factory which he owns under a company.

A spokesman for Dynamex Friction confirmed that the new owner of the business is Mark Jones, a former factory manager with Friction Dynamics.

It is the latest twist in a long-running and high-profile saga involving the plant stretching back to April 2001.

Fight

Then 86 original workers went on strike over pay and conditions, and were sacked eight weeks later.

Their fight won the support of the local community and, further afield, the leaders of the national Transport and General Workers Union.

Late last year an unemployment tribunal found the workers had been unfairly dismissed and were entitled to compensation.

However, Mr Smith - who is now to return to America - launched an appeal against that ruling and the case is due to be heard in November.

Meanwhile, the sacked workers maintain their picket at the factory gates and their two-year fight for compensation goes on.

Union leaders say a change in the law is needed after what has happened at the plant.