Jobs go as historic factory in Walsall closes after more than 120 years

Financial challenges and the impact of the coronavirus pandemic have been blamed for the closure of Walsall-based The Electrolytic Plating Company which produced high quality surface coatings and metal finishing to the construction and motor industries.

Since going into administration on September 5, two divisions of the Wednesbury Road company have been bought out by new owner Wolverhampton Electro Plating Limited which resulted in the retention of an undisclosed number of jobs.

However, administrators BDO said the remaining section of the business has now ceased trading with some redundancies.

BDO joint administrator Kerry Bailey said: “The Electrolytic Plating Company Limited has traded for over a century, but it has had to navigate a number of financial challenges particularly since the Covid crisis.

“We are delighted that the sale of the two divisions and certain assets will see the business continue securing the continued employment for the divisional employees.

“Regrettably the administration has also resulted in a number of redundancies. The administrators are supporting affected staff members with their statutory redundancy claims.

“We are now taking steps to maximise the remaining assets of the company for the benefit of creditors in line with our duties.”

The company's website stated that it has between 50-200 employees.

Wolverhampton Electro Plating Limited which has bought some of the business is based in Wood Lane, Fordhouses, Wolverhampton.

Councillor Aftab Nawaz, leader of Walsall Council''s Independent Group, said many generations of residents from the Palfrey area where the factory was located had worked there over the decades.

"As a local business there needed to be a level of transparency. The impact of redundancies on families and he community cannot be under-estimated especially with the cost of living crisis affecting everyone," Councillor Nawaz said.

In 1998 a new £1 million hi-tech finishing plant for nickel, copper, brass, anti-corrosion and decorative finishes was unveiled at The Electrolytic Plating Company by Susan Toon whose grandfather founded the company in Birmingham 128 years ago in 1896.

The family firm was being run by her son Andrew Toon when it was put on the market last year.

It was originally called The Electrolytic Apparatus Co designing, manufacturing and installing barrel plating systems for the saddlery, lock and construction industries.

In 1935 the family sold the patent for the barrel plating design they had invented and which is still used by factories across the world to W Canning Ltd and set up The Electrolytic Plating Company instead specialising in metal finishing and barrel plating.