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| Rowecord Engineering, Newport: Collapse could affect suppliers | |
| (35 minutes later) | |
| The collapse of Wales' biggest steel contractor could affect other companies along the M4 corridor which supplied it, administrators say. | |
| Newport-based Rowecord Engineering, which employed around 400, built the roof of the Olympic aquatic centre. | |
| Earlier it was revealed that the company was offered but declined help from the Welsh government before it collapsed. | |
| The company said it had "exhausted every option" to try to carry on. | |
| Alistair Wardell, from administrators Grant Thornton, 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 salvaged and whether any jobs can be saved." | |
| He added that a number of Rowecord employees will be retained in the short term to complete work in progress. | |
| 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 Welsh government said it offered assistance to the maximum level allowable within state aid rules but Rowecord turned down the offer. |
| Until recently the company employed over 500 staff at sites in Newport, Baglan, and the Tata Steelworks at Port Talbot - but 400 of those were given notice over recent months. | |
| 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. |
| Tory business spokesman Nick Ramsay said he 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. |
| "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. " | |
| 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". |