Tuesday, September 29, 2015

News: Kiveton Park Steel in administration


Kiveton Park Steel, an award-winning Rotherham-based manufacturer that can trace its history back to 1922 has entered administration, with over 100 staff hoping that a buyer can be found.

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.

The major subsidiary of Kiveton Park Holdings, which has interests in steel processing, international distribution and trading, was awarded the Queen's Award for Enterprise in 2012 as exports hit record levels.

Phil Pierce and Ben Woolrych, partners of FRP Advisory, have been 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.

The business is seeking to fulfil existing customer orders through the administration and it is hoped that the joint administrators can market the business for sale. The cash-flow pressures put pay to any restructuring of the business to secure the company's future.

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.

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, joint administrator at FRP Advisory, said: "The steel business continues to go through some tough times and it is unfortunate that a Yorkshire-based business with nearly 100 years of trading should be the latest to feel the squeeze.

"As joint administrators we will be focusing on delivering Kiveton Park's existing customer orders where possible, whilst constantly reviewing the financial position with a view to establishing a long term solution for the business in the interests of all the creditors."

Kiveton Park Steel website

Images: Kiveton Park Steel


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