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Rowecord Engineering, Newport: Earlier help needed, says Nick Ramsay | Rowecord Engineering, Newport: Earlier help needed, says Nick Ramsay |
(about 2 hours later) | |
Wales' biggest steel contractor could have received help from the Welsh government before it collapsed, Tory business spokesman Nick Ramsay claims. | Wales' biggest steel contractor could have received help from the Welsh government before it collapsed, Tory business spokesman Nick Ramsay claims. |
Newport-based Rowecord Engineering said about 500 staff could be made redundant as administrators moved in on Monday. | |
The Olympics aquatic centre roof was among its many high-profile projects. | The Olympics aquatic centre roof was among its many high-profile projects. |
The Welsh government said it offered assistance to the maximum level allowable within state aid rules but Rowecord turned down the offer. | |
The company until recently employed over 500 staff at sites in Newport, Baglan, and the Tata Steelworks at Port Talbot. | |
In a statement on Friday the company said it had "exhausted every option to sustain the business in future" and would go into administration. | In a statement on Friday the company said it had "exhausted every option to sustain the business in future" and would go into administration. |
Mr Ramsay accepts that help was offered but told BBC Radio Wales it came too late in the day. | |
"You've got to face the fact there are these drop-offs in ordering linked to the recession," he said. | "You've got to face the fact there are these drop-offs in ordering linked to the recession," he said. |
"Although the Welsh government did offer support I think that was later in the day than it might have been. | "Although the Welsh government did offer support I think that was later in the day than it might have been. |
"I think what we really need to see from the Welsh government is a better manufacturing strategy, for the government to stand back and say 'right, how are we going to better support companies like this?' | "I think what we really need to see from the Welsh government is a better manufacturing strategy, for the government to stand back and say 'right, how are we going to better support companies like this?' |
"They [engineering firms] are a section of the economy and there are other areas the economy can diversify into but if you continually lose companies like Rowecord, then I think at the end of this process Wales will be a poorer place economically." | "They [engineering firms] are a section of the economy and there are other areas the economy can diversify into but if you continually lose companies like Rowecord, then I think at the end of this process Wales will be a poorer place economically." |
Rowecord has been a steelwork contractor on major projects, including: | Rowecord has been a steelwork contractor on major projects, including: |
Ron Jones, Labour councillor in Newport's Pill ward, which covers Rowecord, described the news as a "major blow". | Ron Jones, Labour councillor in Newport's Pill ward, which covers Rowecord, described the news as a "major blow". |
He added: "It's devastating to us actually because as an area of high unemployment, in excess of 20%, and this is adding to all that misery. | He added: "It's devastating to us actually because as an area of high unemployment, in excess of 20%, and this is adding to all that misery. |
"They have been here since 1970. They are a major company in Newport and when a major company goes to the wall you're in deep trouble." | "They have been here since 1970. They are a major company in Newport and when a major company goes to the wall you're in deep trouble." |
Jonathan Deacon, a reader in marketing and entrepreneurship at the University of South Wales in Newport, said the recession has hit a major firm hard. | Jonathan Deacon, a reader in marketing and entrepreneurship at the University of South Wales in Newport, said the recession has hit a major firm hard. |
"I think many large projects have been cut back economically and that pipeline of those big projects has just dried up for this company," he said. | "I think many large projects have been cut back economically and that pipeline of those big projects has just dried up for this company," he said. |
"The problem is you've got a large company here and they need large items to manufacture. | "The problem is you've got a large company here and they need large items to manufacture. |
"There are many companies in the manufacturing sector in Wales I'm pleased to say are doing really, really well. | "There are many companies in the manufacturing sector in Wales I'm pleased to say are doing really, really well. |
"But they are probably on the smaller scale when a £10,000, £20,000, £30,000 project is pretty good. This company needs a £100,000, £200,000 and £300,000 project just to keep going. | "But they are probably on the smaller scale when a £10,000, £20,000, £30,000 project is pretty good. This company needs a £100,000, £200,000 and £300,000 project just to keep going. |
"This recession has bitten long and hard. This is a 10-year recession and we've not seen the back of it yet and there's going to be casualties like this. | "This recession has bitten long and hard. This is a 10-year recession and we've not seen the back of it yet and there's going to be casualties like this. |
"We're going to see them [casualties] continue because that amount of business is not there. It's going to dry up before it gets better." | "We're going to see them [casualties] continue because that amount of business is not there. It's going to dry up before it gets better." |
Unite union officer Brian Godsell said on Sunday workers were "devastated" and he was surprised Rowecord had turned down an offer of help from the Welsh government. | Unite union officer Brian Godsell said on Sunday workers were "devastated" and he was surprised Rowecord had turned down an offer of help from the Welsh government. |
The Welsh government called it "very disappointing news". | The Welsh government called it "very disappointing news". |
Grant Thornton administrator Alistair Wardell, said: "This is a devastating blow, not just for the Rowecord workforce which will be affected, but for the Welsh economy as a whole. | |
"It is also likely to have an impact on the number of other companies along the M4 corridor that up until now have been suppliers to Rowecord. | |
"Among our roles as administrators will be to explore which, if any, parts of the business can be salvages and whether any jobs can be saved." | |
He added that a number of Rowecord employees will be retained in the short term post-administration to complete work in progress. |