A steel company employing more than 400 people has gone into administrative receivership.
A steel company employing more than 400 people has gone into administrative receivership.
Trade union Community said the news about Alphasteel in Newport was "terrible" and "couldn't have come at a worse time," days before Christmas.
Trade union Community said the news about Alphasteel in Newport was "terrible" and "couldn't have come at a worse time," days before Christmas.
Local politicians called the news "devastating."
Local politicians called the news "devastating."
But the administrators said there had been interest in buying the business and they hoped to return to production in the New Year.
But the administrators said there had been interest in buying the business and they hoped to return to production in the New Year.
The company was founded in 1974 and in 2003 was taken over by Swiss-based Satico Ltd, which is linked to an Iranian company.
The company was founded in 1974 and in 2003 was taken over by Swiss-based Satico Ltd, which is linked to an Iranian company.
Joint administrators Chris Morris and Simon Thomas, of business rescue specialist Begbies Traynor, took control of the firm on Friday morning and sent staff home.
Business rescue specialists Begbies Traynor took control of the firm on Friday morning and sent staff home.
They are seeking to secure a sale to allow the business to return to full production.
They are seeking to secure a sale to allow the business to return to full production.
A spokeswoman said 30 staff were remaining until a buyer was found.
A spokeswoman said 30 staff were remaining until a buyer was found.
"The ultimate effect on jobs will be decided by the speed at which a purchaser can be found."
"The ultimate effect on jobs will be decided by the speed at which a purchaser can be found."
Administrator Simon Thomas added: "The Newport site delivers a first class production facility, and interest has already been shown by international steel producers.
Joint administrator Simon Thomas added: "The Newport site delivers a first class production facility, and interest has already been shown by international steel producers. "A sale of the business in the New Year would allow Alphasteel to return to full production."
"A sale of the business in the New Year would allow Alphasteel to return to full production."
Michael Leahy, head of the Community union, said the company should be profitable and it should be able to find a buyer.
Michael Leahy, head of the Community union, said the company should be profitable and it should be able to find a buyer.
He said the union had "desperately tried to help the company out of the situation it has found itself in".
He said the union had "desperately tried to help the company out of the situation it has found itself in".
The highly skilled, efficient and effective workforce deserve long-term security and we will do our utmost to ensure all avenues are explored to keep these vital jobs John Griffiths AM, Newport East
The highly skilled, efficient and effective workforce deserve long-term security and we will do our utmost to ensure all avenues are explored to keep these vital jobs John Griffiths AM, Newport East
He said Community would work with the receiver, the Welsh Assembly Government and other bodies to try to find somebody to acquire the firm.
He said Community would work with the receiver, the Welsh Assembly Government and other bodies to try to find somebody to acquire the firm.
Mr Leahy said if there were redundancies the union would ask for help from the assembly government to provide counselling and support for workers and their families.
Mr Leahy said if there were redundancies the union would ask for help from the assembly government to provide counselling and support for workers and their families.
Newport East MP Jessica Morden said: "I want to assure them that we will do everything we possibly can to work with the receivers, unions and Welsh Assembly Government to seek potential buyers".
Newport East MP Jessica Morden said: "I want to assure them that we will do everything we possibly can to work with the receivers, unions and Welsh Assembly Government to seek potential buyers".
Newport East AM John Griffiths said: "The highly skilled, efficient and effective workforce deserve long-term security."
Newport East AM John Griffiths said: "The highly skilled, efficient and effective workforce deserve long-term security."
'Important tradition'
'Important tradition'
Mr Griffiths said the "buoyant steel market" should make it possible to find a buyer.
Mr Griffiths said the "buoyant steel market" should make it possible to find a buyer.
Ahead of today's separate developments, British Gas Trading confirmed they had submitted a winding up petition against Alphasteel to the courts in London earlier this month over debts owed to them.
Ahead of today's separate developments, British Gas Trading confirmed they had submitted a winding up petition against Alphasteel to the courts in London earlier this month over debts owed to them.
Phillip Price, correspondent for Metal Bulletin, an industry publication said: "The parent company of Alphasteel [Satico Ltd] was placed into administration in Switzerland, which is currently under appeal.
Phillip Price, correspondent for Metal Bulletin, an industry publication said: "The parent company of Alphasteel [Satico Ltd] was placed into administration in Switzerland, which is currently under appeal.
"Alphasteel had a petition to wind up the company filed against it and a court hearing has been scheduled for next year.
"Alphasteel had a petition to wind up the company filed against it and a court hearing has been scheduled for next year.
"What is clear is that Satico Ltd's future is in doubt and that of Alphasteel as well.
"What is clear is that Satico Ltd's future is in doubt and that of Alphasteel as well.
"We understand the Alphasteel plant was shut down after Satico Ltd went into receivership and isn't scheduled to open until January - the firm says it is shut for planned maintenance.
"We understand the Alphasteel plant was shut down after Satico Ltd went into receivership and isn't scheduled to open until January - the firm says it is shut for planned maintenance.
"It's very confusing, but very interesting that since Alphasteel was acquired by Satico it has had a number of problems - problems getting electricity, they've had to make redundancies."
"It's very confusing, but very interesting that since Alphasteel was acquired by Satico it has had a number of problems - problems getting electricity, they've had to make redundancies."
He said the future for both firms was in doubt until matters were resolved for Satico Ltd.
He said the future for both firms was in doubt until matters were resolved for Satico Ltd.
Do you work at Alphasteel? Can you tell us any more about what has happening or how it has affected you?
Do you work at Alphasteel? Can you tell us any more about what has happening or how it has affected you?
We are devasted just 4 days before christmas, we have kids and mortgage to pay.Just feel quite sick and numb at the moment !What a time for this to happen !D Evans, Gwent
We are devasted just 4 days before christmas, we have kids and mortgage to pay. Just feel quite sick and numb at the moment ! What a time for this to happen !D Evans, Gwent
My Fiance has just been made redundant this morning with no warning whatsoever as all was thought to be ok after the last redundancies were made a few weeks ago.He was told by the administrators that it would cost around £70million to get the place up & running as it should be, money they said they did not have which was why they had no alternative but to lay everyone off.It is absolutely devastating alone, without it being so close to christmas.We were also due to be married next july at The Celtic Manor, all our deposits were paid & we have now had to cancel everything., Newport Wales
My Fiance has just been made redundant this morning with no warning whatsoever as all was thought to be ok after the last redundancies were made a few weeks ago. He was told by the administrators that it would cost around £70million to get the place up & running as it should be, money they said they did not have which was why they had no alternative but to lay everyone off. It is absolutely devastating alone, without it being so close to christmas. We were also due to be married next july at The Celtic Manor, all our deposits were paid & we have now had to cancel everything., Newport Wales
