Administrator FRP has started the search for a buyer of steel fabricator and bridge builder Cleveland Bridge, following its appointment today.
The news came after it emerged that staff at the firm have been warned of the potential for redundancies.
FRP said that Cleveland Bridge UK, part of the Saudi Arabian Al Rushaid Group, has been “severely impacted” by delays to projects in the UK and internationally as a result of the covid-19 pandemic and requires significant further investment as a result.
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The firm, established in 1877, employs 221 staff at its headquarters in Darlington and an engineering site in Newport, South Wales. The business also has 48 contractors in Darlington and around 50 on various sites.
The joint administrators will now market the business for sale and engage with CBUK’s clients to discuss continued support on live projects. FRP said it would engage with staff and decisions will be made on any necessary redundancies.
Martyn Pullin, partner at FRP, said: “Cleveland Bridge UK has been a flag bearer for cutting-edge British engineering for more than a century. But no business is immune to the far-reaching impact of the pandemic, which has delayed major infrastructure projects around the world and put significant financial pressure on the teams behind them.
“CBUK is a business with a proud history and a formidable track record of engineering excellence. It also has great potential and should attract interest from the steel fabricants sector and other firms looking to break into the specialist bridge building market. Unfortunately, without significant investment, the business will be wound up. That is why we’re calling on any interested parties to come forward.
“Regrettably, the business is unable to continue operating at its current capacity. We are urgently reviewing contracted work in progress to determine the shape of the business going forward.”
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