SALEM — Compco Industries in Columbiana formed Compco Quaker Manufacturing last week, taking over the 50-year-old Salem manufacturing company, the Journal’s news partner, WKBN First News, reported.

That new company was formed just before Quaker Mfg.’s lender, First National Bank of Pennsylvania, filed a breach of contract lawsuit saying the company failed to make payments on $4.8 million in debt.

A hearing on the lawsuit was set for Tuesday. Neither company has made an official announcement about the possible sale or the impact on any layoffs, WKBN reported.

On June 9, in a letter to employees, Quaker Mfg. said it could permanently shut the plant down later this month, idling 115 employees if it couldn’t reach an agreement with its bank.

But the company also said it was investigating alternatives for the plant at 187 Georgetown Road.

Quaker Mfg. is a metal stamping and fabricating plant that serves several automotive, recreational vehicle and outdoor power equipment markets.

Located at 400 W. Railroad St., Compco manufactures tank heads, operates metal stamping presses, HD plasma cutting equipment, and has a machine shop.

lshields@salemnews.net