Forfar-based Ross & Bonnyman says it will stop producing commercial vehicle tail-lifts and transfer parts and warranty commitments to Ratcliff Palfinger, subject to approval from the Office of Fair Trading (OFT).
The decision, says chairman Alan Honig, is strategic.
"Everybody knows the whole CV market is down. We see our future in other markets (ambulance lifts, yard lifts and lifting decks)," he says.
Today, CV tail-lifts make up less than half of the total manufacturing output for the Scottish company.
Ratcliff Palfinger will run the Ross & Bonnyman parts business out of its National Parts Centre in Garforth, Leeds, and take responsibility for existing undertake warranty obligations.
This deal requires OFT approval before any transfer takes place, and it is anticipated a decision will be made before 4th January 2011.
If the OFT doesn't ratify the deal, Honig says Ross & Bonnyman will continue to build tail-lifts for the CV market for the foreseeable future.
