A spokesman for Nick Clegg has voiced disappointment over the loss of 150 jobs at a crisis-hit Rotherham metals specialist.
It comes after the deputy prime minister toured MTL Group in November and praised it as a good news story for British manufacturing.
The spokesman said: “It is obviously disappointing to hear that the business has had to take this decision.
“Any lost job is a tragedy for those involved and what it important now is that all local agencies and parties come together to ensure that everything possible is done to help those affected get back into work.”
The jobs were cut as the contract manufacturing specialist went into administration – with the move blamed on the loss of a large overseas defence contract and cash flow problems.
A further 146 jobs are at risk unless a new buyer can be found for the company, which is based on Grange Lane, Brinsworth.
The directors called in Ernst & Young to oversee the administration process earlier after being unable to pay creditors.