AIC Steel has appointed administrators with the loss of 101 jobs

Steel

Source: Alamy

A Saudi-backed steel firm that came to the rescue of Rowecord three years ago has itself entered administration.

AIC Steel Limited appointed administrator Begbies Traynor earlier this week, making 101 redundancies.

The 29 remaining employees will continue to assist the steel fabricator and erector business, a statement from the administrator said.

It added that Begbies Traynor is investigating the viability of continuing trading, while efforts are made to find and secure a buyer for the business.

Rowecord Engineering was placed into administration in May 2013, making 430 people redundant and owing £24m to creditors.

AIC Steel acquired the business and its assets and planned at the time to produce around 18,000 tons of structural steel a year.

Rowencord’s former owners then opened a new 25,000 sq ft structural steel fabrication plant in Port Talbot near Tata Steel’s beleaguered operations.

Tata Steel earlier this year sold its Long Products business based in Scunthorpe to Greybull Capital, which is attempting to revive its fortunes under the guise of British Steel.