The Johnson Radley Foundry has been saved in a management buyout which will secure 30 jobs.
The Pudsey firm, formerly part of the BRK Group, had been in administration.
The deal was led by Andrew Knight, who has 28 years of experience in the foundry industry.
Mr Knight, who has been with the firm for 11 years, is to become managing director at the new company.
The former general manager said: "With the future secure we are now looking to consolidate our position as a leading independent foundry by supplying into new markets including exports."
Robert Brech joins the company as non-executive chairman.
A former managing director of Johnson Radley Ltd, from 1995 until its sale to BRK in 2000, he is non-executive director of York Science Park Innovation Centre and Science City, York.
Managers at the firm, which is involved in the production of high quality castings in cast iron or aluminium bronze for the engineering industry, completed the deal for an undisclosed price.
Customers include manufacturers of valves, pumps, water meters, chemical flow equipment, hydraulics, railway rolling stock, tractor parts and industrial clutches.
Lead advisors for the management team were RM Corporate Solutions, the corporate finance arm of Skipton-based accountancy firm Robertshaw & Myers.
Phil Bailey, corporate finance partner at RM Corporate Solutions, said: "We are very pleased that this top quality business has been saved from closure."
l Pictured are, from the left, Michelle Mathers of Gordons Cranswick; Robert Brech; Andrew Knight; and Phil Myers of Robertshaw & Myers who helped with the deal.
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