The future for Newall DROs.

Following the sale of B. Elliott Group's digital-readout-producer, Newall Measurement Systems (Leicester, U.K.), for an undisclosed sum to BEI Technologies Inc. (San Francisco, Calif. See M.I.R., 11 / 15/04), Newall's managing director Derek Rimmer says, "BEI knew of us in the market, as we

"BEI wanted a linear encoder to complement its product range." Rimmer continues. He says BEI will operate Newall as an autonomous division as it does with all of its divisions. Newall Electronics has a turnover of some $12-million and employs 84. Design and manufacturing will continue in Leicester. BEI has annual revenues of $230-million.

"We see a bright future," Rimmer envisions. "In automation, in the growing business in China, and in the U.S." He adds that his company's European business is static, and it had peaked in the U.K.

As well as selling Newall, the London-based holding company B. Elliott Group Ltd., is expected to solve its financial difficulties by eventually selling off six engineering-associated subsidiaries. Two more are expected to go during 2005. The Elliott Group currently consists of Addison McKee (tube and pipe bending, with headquarters in Preston, Lancashire, U.K. and a unit in Wilmington, Ohio), Garryson Ltd. (solid-carbide tooling and abrasives, with HQ in Leicester, U.K. and a unit in St. Louis, Mo.), Halifax Rack & Screw Cutting Co. Ltd., (precision racks and screw threads for mechanical handling, Brighouse, Yorkshire, U.K.), Vanner Inc. (power equipment, Columbus, Ohio), and Weldon Technologies Inc (lighting systems, Columbus, Ohio).

Newall Measurement originally was a 1968 subsidiary of machine-tool-builder Newall Engineering Ltd., which produced its last machine tools in the early 1980s.

From our European correspondent.