Hunslet-Barclay, the railway engineering works in Kilmarnock that collapsed after a cashflow crisis, has been sold out of administration for£2.1m in a deal that saves 119 jobs.

Its sale marks the survival of a long-established Scottish engineering company that has refused to die, in spite of its track record of troubles dating back more than 150 years.

Administrator KPMG, which was appointed at the end of last month, said the company's business and assets had been sold to engineering group FKI on behalf of its railways subsidiary, Brush Traction.