Paul Herbert flew to China in 2017, seeking a partner to help his precision engineering company expand. The chairman of Smiths Harlow met 10 Chinese manufacturers that promised to help him boost output. Future Aerospace, based in the southwestern province of Sichuan, seemed the best fit.
After being introduced through a government working group, Herbert met Han Hua, Future’s chairman, who took him to one of his factories near Beijing. “When you walked through the door, it looked just like Smiths,” Herbert recalled. “He came across as a very genuine guy.”
Instead of creating a manufacturing partnership, the pair struck an £8m deal in October of that year for Future to buy the Essex-based engineer. Later, at the Paris and Farnborough air shows, the two companies presented a united front.
The honeymoon soon turned sour. Smiths and its private equity backer, Agathos, accused Future of stealing trade secrets before reneging on the deal — causing a cash crunch that tipped the 72-year-old company into administration. Future denies the allegations.
The demise of an innovative engineer that made parts for Bombardier and Rolls-Royce provides a salutary lesson for those who want more British businesses to deal with China, especially after Britain’s departure from the EU.