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Buyers search for steel company | |
(about 4 hours later) | |
Administrators called in to a Newport steel plant are beginning the process of trying to find a buyer. | Administrators called in to a Newport steel plant are beginning the process of trying to find a buyer. |
The Alphasteel site which employs more than 400 people was put into administrative receivership on Friday. | The Alphasteel site which employs more than 400 people was put into administrative receivership on Friday. |
A team of 30 people is being kept on at the plant to carry out maintenance while potential buyers are sought. | A team of 30 people is being kept on at the plant to carry out maintenance while potential buyers are sought. |
Workers sent home without their weekly wages have described the announcement as a body blow coming just days before Christmas. | Workers sent home without their weekly wages have described the announcement as a body blow coming just days before Christmas. |
Assistant roller man at Alphasteel, Brian Silver, described the mood as angry: "It's devastating obviously. We've just been meeting with our colleagues, they've got families and no wages for the week. | Assistant roller man at Alphasteel, Brian Silver, described the mood as angry: "It's devastating obviously. We've just been meeting with our colleagues, they've got families and no wages for the week. |
"They are very angry because they have been misled for the last couple of years since we've been taken over by the Iranian company. | "They are very angry because they have been misled for the last couple of years since we've been taken over by the Iranian company. |
We're hopeful that in the new year it reopens Alphasteel worker, Brian Silver | We're hopeful that in the new year it reopens Alphasteel worker, Brian Silver |
"There they were saying there was positive news all the time, there was nothing to worry about, they had plans for the future and things were going to take off." | "There they were saying there was positive news all the time, there was nothing to worry about, they had plans for the future and things were going to take off." |
Mr Silver has already faced redundancy from steel works once before, after spending 32 years at Allied Steel and Wire in Cardiff. | Mr Silver has already faced redundancy from steel works once before, after spending 32 years at Allied Steel and Wire in Cardiff. |
Just a few days ago he said he was celebrating after the UK government announced a £2.9 billion package to restore pensions to those who had lost out when companies collapsed, including ASW workers. | Just a few days ago he said he was celebrating after the UK government announced a £2.9 billion package to restore pensions to those who had lost out when companies collapsed, including ASW workers. |
But he insisted he remained confident about Alphasteel's future. | |
"We're hopeful that the receivers have put sort of a positive slant on it, there have been a few inquires already," he said | |
"We're hopeful that in the new year it reopens." | "We're hopeful that in the new year it reopens." |
International interest | International interest |
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. |
Business rescue specialists Begbies Traynor, who have taken control of the firm, said they are seeking to secure a sale to allow the business to return to full production. | Business rescue specialists Begbies Traynor, who have taken control of the firm, said they are seeking to secure a sale to allow the business to return to full production. |
Joint 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. |
In separate developments, it has emerged British Gas Trading had submitted a winding up petition against Alphasteel to the courts in London earlier this month over debts owed to them. | |
Newport East AM, John Griffiths, said he was concerned at the developments, but remained hopeful for the site's future. | |
"I think one very positive aspect of it is we know that the market for steel is very strong at the moment and hopefully it will be possible to get a company, another enterprise to take over Alphasteel," said Mr Griffiths. | "I think one very positive aspect of it is we know that the market for steel is very strong at the moment and hopefully it will be possible to get a company, another enterprise to take over Alphasteel," said Mr Griffiths. |
Raw materials | Raw materials |
However, Jonathan Deacon from Newport Business Schooll, said a buoyant steel market may not be enough to help Alphasteel. | |
"You need that production at the point where you are going to use it, i.e. take the steel and make it into something else. | |
"Lets be honest, that isn't in the UK. That's going to be in places like China and parts of Russia. | |
"It's raw materials are the wrong raw materials to have right now, if you can have such a thing, and it's in the wrong place." | "It's raw materials are the wrong raw materials to have right now, if you can have such a thing, and it's in the wrong place." |
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