MANAGERS behind a buy-out deal which will save some 40 skilled engineering jobs near Ravenscraig in Lanarkshire have resurrected the highly-regarded Anderson Strathclyde name in preparation for expansion into new European markets.

The head of the newly-formed Anderson Precision Gears (APG) said although the business would rely on its former parent company for up to 70% of its turnover during the first few years, plans were in place to enter new markets in countries such as France, Spain and Belgium. The rail stock and defence sectors have been identified as promising areas.

APG managing director Willie Wales said the European market for high-quality industrial gears used in machines such as quarrying, earth-moving and mining equipment was worth an estimated #6000m. He hopes the Anderson name will give his company a competitive edge in grabbing a larger slice of this business.

''We have revived the original name of the business because Anderson is a byword for excellence in the field of engineering,'' Wales said.

APG had been part of the US-controlled coal-mining company Long Airdox since the early 1990s. Prior to that it was owned by the Charter Group, which purchased what was then Anderson Strathclyde in the early 1980s.

Long Airdox decided in July 1997 to relocate what remained of the old Anderson Strathclyde engineering group's manufacturing site to the US, leading to the loss of 360 jobs in Motherwell.

However, it became apparent it would be too expensive to manufacture or source coal-mining equipment gear boxes in the US.

Long Airdox was faced with the prospect of running a small subsidiary thousands of miles away from its base, or selling.

''I guess they decided that it was easier to sell the business to us rather than trying to re-invent the wheel in the US,'' said Wales.

At a total value of #1.75m, the deal ensured that 39 full-time jobs remain in Motherwell. Growth in new export markets should increase the employment tally by a further 20 during the next three years, with APG having already taken on its first two apprentices.

Wales and his management partners, marketing director Ian Kinstrie and non-executive director Gordon MacLennan, have taken a 75% stake in the new company.

British Steel Industry took up the remaining 25% equity stake, and provided loan capital. Senior debt was made available by Natwest Corporate Banking, with help from North Lanarkshire Council.

Strathclyde Seed Capital Fund and Lanarkshire Development Agency also provided equity assistance, giving both organisations preference shares. Scottish Office Regional Selective Assistance grants of #350,000 over the next three years have been promised.