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Network Rail Infrastructure has acquired the rail division of Hydrex Equipment Ltd from its administrators KPMG to ensure the continuity of construction work.
Hydrex is the largest provider of road-rail vehicles to the rail industry and one of the primary suppliers to Network Rail and its infrastructure contractors.
A new subsidiary of Network Rail, called Network Rail (NDS-Plant) Ltd, will absorb 531 former Hydrex employees and assume ownership of over 300 road-rail vehicles.
Martin Elwood, director of Network Rail's National Delivery Service, claimed that the decision to acquire Hydrex's rail assets was not "taken lightly".
He said: "The purchase of Hydrex's rail division has secured hundreds of jobs while making sure we can deliver as planned our programme of maintenance, renewals and enhancements across the rail network.
"Our priority in making this purchase is to ensure continuity of works."
Talks were held with the Office for Rail Regulation, the Rail Plant Association, contractors, union members and Hydrex customers before the deal was brokered.
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