Workers now own a manufacturing company after its founder transferred his entire shareholding in the parent company to an employee ownership trust (EOT).
Key-Tech International Group’s subsidiary NEL Technologies Limited is a manufacturer of flexible heater assemblies and started out in 1984 in Consett before relocating to Newcastle, where its product development and innovation has led to it enlisted global blue-chip companies as clients. The firm, which sees the majority of sales going to export markets, was moved to become an EOT as it preserves the independence of the group and protects employment in the North East.
EOTs were introduced by the Government in 2014 to facilitate wider employee ownership, with the aim to encourage more shareholders to set up a corporate structure similar to the John Lewis Partnership model. Patrick Ferguson, the founder, said: “I knew I couldn’t continue to own the group forever, however, I was worried that a trade buyer might at some stage shut down the North East operations and move production out of the area.
