Steel manufacturer deal saves MIDS jobs
5 January 2016
Jobs have been saved after part of a steel fabrication manufacturer with bases across the West Midlands was bought out of administration.
However, more than 80 redundancies were made ahead of the insolvency with a number of sites ceasing to trade, including one in Staffordshire.
Raj Mittal and Arvindar Singh-Sall of FRP Advisory were appointed to Aldridge Fabrications Ltd on 18 December 2015.
It employed about 140 staff across four sites in Staffordshire, as well as bases in Tyne and Wear, Prenton and Hungary.
The business has been trading for more than 50 years and primarily supplied the mining and fabrications sectors, but had faced a downturn in revenues over the past years due to the declining contract mining industry.
As part of the sale to Aldridge Fabrications (AF) Ltd, 58 jobs were preserved in Burntwood, Brownhills and Dilhorne in Staffordshire, as well as Birtley.
However, 82 redundancies were made prior to the administration after the decision was made to close its supplying products divisions in Brownhills, Prenton and its factory in Hungary.
Arvindar Singh-Sall, joint administrator and director at FRP Advisory, said: "The company's division supplying products for the mining industry was the latest to feel the squeeze from an industry which remains tough for all operators and suppliers.
"The sale has secured the future of Aldridge Fabrications' fabrications division and 58 jobs, ensuring a continuity of service to the business' core customers who rely on the quality of its steel products.
"This transaction is particularly welcome to the regional midlands economy amid the continued difficulties faced across the wider steel manufacturing sector."