90 jobs go as Smethwick foundry firm calls in administrators
Around 90 workers have been axed and administrators called in at historic Smethwick foundry firm Incanite, it was revealed today.
The company has ceased trading in a shock move after hitting serious cash flow problems. Following major investment at the site, including a £1.4 million new aluminium foundry, it was hit by falling turnover and the loss of a number of customers late last year.
Founded in 1920 and based in Cornwall Road, the company employed just over 100 people, but since it ceased trading at the end of last year around 90 employees have been laid off.
Incanite operated aluminium and iron foundries, supplying castings and project development solutions to a number of global manufacturing and engineering customers for use in a variety of industry sectors.
Until recently, the company had focused solely on the iron foundry business. However, following the acquisition of the company in early 2012, significant investment was made including the expansion into the aluminium castings market. There were also plans for an £800,000 technology centre.
But administrators from Baker Tilly in Birmingham said turnover at the company fell during the latter part of 2013, following the loss of a number of customers and this led to serious cash flow issues.
Guy Mander and Dilip Dattani of Baker Tilly have been appointed joint administrators to Incanite Foundries, and Mr Mander said today: "Major investment was made to grow the business, however the loss of customers and associated cash flow implications meant that administration was necessary in order to protect assets for the benefit of creditors."
