40 workers axed at engineering company
More than 40 jobs have been lost at a Burntwood and Brownhills-based engineering firm, it has emerged.
Aldridge Fabrications, which was founded more than half a century ago, closed sites at Coppice Side in Brownhills, Prenton in Merseyside and a factory in Hungary.
Jobs were also lost at the firm's site at Chase Road in Brownhills, while 34 were made redundant at the headquarters in Mount Road, Burntwood.
However, the remaining 58 workers at the two sites, as well as in Dilhorne near Stoke-On-Trent and at Birtley in Tyne & Wear, were saved in a buyout by newly-formed group called Aldridge Fabrications (AF) Limited after administrators FRP Advisory were called in on December 18.
The company, which was a specialist in making equipment for mines, faced difficulties with the global mining industry slump over the past three years, as the price of iron, coal and other metals fell dramatically, largely because demand from the huge Chinese economy dried up.
A statement from FRP Advisory said: "Company turnover had declined for the past few years as the business was over-exposed to a contracting mining industry, resulting in unsustainable pressure on the company's cash flow.
"Aldridge Fabrications was restructured in order to try and ease cash-flow but the decline in income from the mining business was too severe, leaving the company with no viable option for the business to continue as a going concern."
Administrators Raj Mittal, partner, and Arvindar Singh-Sall, director at FRP Advisory, were called in.
They had to immediately cease trading at the company's mining division, resulting in the closure of three operating sites. Prior to the administration the company had concluded the redundancy process with 82 of its staff.
Arvindar Singh-Sall, from FRP Advisory, said: "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."
