100 jobs saved at steel firm

ADMINISTRATORS who were put in charge of a crisis-hit steel firm have struck a deal that will preserve 100 jobs for six months.

Kiveton Park Steel, which makes products for automotive industry, went into administration in September.

Its financial troubles arose from unsustainable pressure on cash flow after a deterioration in the specialist steel market.

Administrators at FRP Advisory put the company, which has been in family ownership since 1922, up for sale and made 20 workers redundant.

But within a week FRP Advisory had struck deals with automotive manufacturers which safeguarded the firm until mid-December.

Now, those deals have been extended for another six months.

A spokesman for the administrators said the agreements reflected the importance of the company’s products to the industry.

He also said talks regarding the sale were continuing.

Phil Pierce, partner at FRP Advisory and joint administrator, said securing the extension to the supply agreement meant they had been able to retain the 100 staff until at least the end of June 2016.

He said: “The steel industry continues to feel the squeeze from a global downturn in the market so we are pleased to have secured further funding support for Kiveton Park Steel for a significant period while sales talks continue.

“This funding agreement will be particularly welcome to the firm’s staff and their families as we enter the festive period and we are grateful for all their support.

“The wider steel market remains challenging but Kiveton Park produces quality products and has loyal customers which all helps with a sound continuity of trading whilst we continue to engage with interested parties as part of the ongoing business sales process.”

The company makes bright engineering steel bar and wire for products in the automotive, aircraft, cold forming and machined parts industries.