Monday, February 2, 2015

News: Rotherham's MTL Group in administration - 157 made redundant


Rotherham-based MTL Group, one of Europe's fastest growing project manufacturing specialists in the metal sector, has appointed John Sumpton and Hunter Kelly of EY's Restructuring team as joint administrators after encountering difficulties on a large overseas defence contract.

Since moving to a new facility at Brinsworth in Rotherham in 2011, where it employs over 350 staff, MTL almost doubled its export sales to £7.3m. Supplying international blue-chip customers such as Bombardier, Rheinmetall and BAE Systems, MTL uses state of the art equipment at the 300,000 sq ft modern manufacturing facility and boasts thirteen cutting machines, including laser, waterjet, flame cutting and high definition plasma. It operates the world's largest bevel laser which is 20m long.

A global exporter of secondary steelwork, MTL's overseas sales rose by 40% in the two years to March 2013 to reach £7.8m. Total sales for the year for the firm came in at an impressive £44.4m.

MTL estimates that it has invested £6m in world class equipment and at the end of 2014, it expanded its cutting division to operate on a fully functional 24/7 basis.

On appointment of the administrators, a total of 157 employees were made redundant and 146 employees have been retained to assist with ongoing operations whilst a purchaser is sought.

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.

"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."

MTL Group website
EY website

Images: MTL Group


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