Thursday, October 15, 2015

News: Kiveton Park Steel continues to trade

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Over 100 staff are still in place as administrators from FRP Advisory secure extended supply agreements for Kiveton Park Steel, the award-winning Rotherham-based manufacturer that went into administration last month.

Established in 1922, the family company originally produced items used within the UK mining industry and also supplied specialised products into the defence and aircraft industries. It has developed its unique range of production equipment to ensure that the manufacturing facility at Dog Kennel Hill in Kiveton Park is suited to supply chain requirements for critical parts within the global automotive markets, principally supplying Tier 1 and Tier 2 companies.

Phil Pierce and Ben Woolrych, partners of FRP Advisory, were appointed as administrators after the business has recently faced unsustainable pressure on its cash-flow due to a sharp deterioration within the specialist steel market.

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Supply agreements provide funding for Kiveton Park to continue trading until mid-December whilst the joint administrators continue to market the business for sale. The supply agreements help secure jobs during this period for around 110 staff, representing the vast majority of the 120 staff associated with the business at the point of administration. The supply agreements support the joint administrators' on-going engagement with interested third parties.

The joint administrators have reviewed staffing levels since the company entered administration but the securing of the latest supply agreements mean that the administrators have retained around 110 staff and they do not envisage having to make further redundancies while the support of key customer supply agreements remain in place.

The company has been closely associated with the global automotive sector, supplying quality products in supply chains leading to diesel injection, steering, engine and suspension parts and providing a full service package for a wide range of material specifications.

The joint administrators will continue to review the financial position of the company during this supply agreement extension period whilst marketing the business for sale.

Turnover for the year ending June 2011 was up by 50% to £27m, by June 2014 this was back down to £19.4m.

Phil Pierce, partner at FRP Advisory and joint administrator, said: "We are pleased that we have secured commitment from some of Kiveton Park's key customers for the next couple of months whilst we continue with the marketing process for business. We are grateful for the support of the business' loyal, hard-working and skilled work-force during this period.

"The latest supply agreement helps underpin the funding needed to allow the business to continue to trade and service Kiveton Park's customers. The joint administrators will continue to engage with interested parties whilst constantly reviewing the financial position of the business."

Kiveton Park Steel website

Images: Kiveton Park Steel

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