More than 150 people have lost their jobs after a major South Yorkshire metal manufacturing specialist went into administration.
The jobs were cut at Rotherham-based MTL Group as the contract manufacturing specialist went into administration today - with the move blamed on the loss of a large overseas defence contract and cash flow problems.
And a further 146 jobs are at risk unless a new buyer can be found for the company, which is based on Grange Lane, Brinsworth.
It comes less than three months after the company was praised by Nick Clegg during a visit to their premises.
Ernst & Young have been appointed to oversee the administration process.
John Sumpton, joint administrator of MTL Group Limited, said: “Although the company was historically profitable, it has encountered difficulties on a large overseas defence contract which resulted in losses and cash flow problems. Despite best efforts to secure new investment or a sale of the company, the immediate cash flow pressures left MTL Group unable to meet its creditor obligations and the directors took steps to appoint Administrators.”
“We are assessing our options to keep the facility operating in the short term whilst seeking a buyer for the business and are continuing to provide product to certain customers. We would encourage any interested parties to come forward.”
He added: “It is with regret that 157 people have been made redundant. We will work with those affected to help them claim outstanding wages and other payments from the Redundancy Payments Office.”
In December the company made around 35 to 40 redundancies. Managing director Henry Shirman said at time that the company had its ‘strongest order book in the company’s history’.
In November, the company was praised by Mr Clegg as he visited their premises. He said: “British manufacturing is a great news story not just in South Yorkshire, but across the wider UK economy. There is a real sense of optimism emerging, albeit cautiously, about the future.”