Tipton castings manufacturer Ferrotech has called in the administrators.
The firm, which makes iron castings including those for the automotive sector, called in two partners from Ernst & Young last week.
Ferrotech has annual sales of around £20 million and approximately 440 employees.
A spokesman for Ernst & Young said: "As the last large iron casting manufacturer in the UK for engine cylinder heads and blocks, Ferrotech has a good name and an excellent blue chip client base.
"We are continuing to trade the business with a view to finding a buyer and early indications are that there is interest out there."
So far two people have been made redundant at the business, which was founded 90 years ago. The company had been embroiled in a labour dispute with the GMB and Amicus unions nearly instigating a walk out last month following a pay freeze.
It is thought that Ferrotech, which lists Ford and Perkins among its clients, had come under pressure from rivals.