Legionnaires' plastics factory sold

The closure of the plant had been announced

More than 100 jobs have been saved at a plastics company where an outbreak of Legionnaires' disease killed three people.

The business and trading assets of Glastonbury-based IMCO Plastics have been sold to Avalon Plastics Limited.

The 119 employees at the plastic injection moulding plant were threatened with redundancy last week when the company announced plans to close.

The decision had followed a lack of "realistic" offers.

Now the success of last-minute talks and a management buy-out deal means the plant will stay open.

Richard Hill, spokesman for the administrative receivers KPMG, said: "I am delighted that we were able to reach agreement with Avalon Plastics which has been interested in the business since we were first appointed."

Cooling system

Mr Hill confirmed that the purchaser would continue to trade from IMCO's premises under a new lease.

IMCO was fined £70,000 for failing to maintain its water cooling system - leading to the fatal cases of Legionnaires' disease in 1998.

The company was told by Mr Justice Gray at Bristol Crown Court that the penalty for its "lamentable" breaches of the Health and Safety at Work Act would normally have run "well into six figures".

But he said such a heavy fine might destroy the company's chances of continuing in business and imperil the prospects of its employees and others living in an area of unemployment.

Legionnaires' disease was contracted by 12 visitors to a garden centre next to IMCO where water used to control the temperature of 60 machines was recirculated through cooling towers.