Hydrex is the largest provider of road-rail vehicles to the rail industry and a key supplier to Network Rail and its infrastructure contractors.
Network Rail said the purchase of the rail division of Hydrex “brings to an end an extended period of uncertainty for Hydrex’s employees, customers and suppliers, while providing continuity of business for the supply of heavy plant to the industry.”
Martin Elwood, director of Network Rail’s National Delivery Service, said: “This is not a step that Network Rail has taken lightly.
“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. Once we have set in place a successful transition we will seek input from across the industry, including other on-track plant suppliers, about any impact on the market place.”
The deal sees ownership of over 300 road-rail vehicles transferred to a new subsidiary called Network Rail (NDS-Plant) Ltd along with 531 employees.