A Worcestershire manufacturing firm has gone into administration, putting as many as 70 jobs at risk.
ALUnna Tubes, in Redditch, called in administrators Deloitte after manufacturing problems and heavy losses.
Deloitte said a large proportion of jobs were likely to be axed while they searched for a buyer.
ALUnna makes extruded and precision drawn aluminium tube products for the airline industry on its 40-acre site in Redditch. Joint administrator Dominic Wong, a partner in the Birmingham office of business advisory firm Deloitte, said: “Unfortunately, ALUnna Tubes has not generated the level of sales needed to cover its cost base and, before administration, had begun a consultation process with its workforce, in anticipation of having to make a large number of its 170 employees redundant.
“Regrettably, some are likely to be made redundant over the coming days whilst we seek offers for the company.
“The business will be mothballed while we look for a buyer, and I would urge anyone with a serious interest in acquiring the business to contact us.”
This year the company was sold by previous owner, the Luxfer Group, which makes high specification aluminium tubes used by customers in aerospace, electronic imaging, industrial gases and for high tech and engineering applications.
Luxfer sold the assets and business of BA Tubes – as it was known then – to Aluminiumwerk Unna of Germany (ALUnna) this year. The business was renamed ALUnna Tubes.
Luxfer Group kept the land and buildings on the Redditch site, although the firm set up a conditional sale agreement with ALUnna, subject to environmental work to be carried out over several years.The sale of BA Tubes marked the last of the former British Aluminium company – formed in 1894 – to be owned by Luxfer.
The bulk of this business was sold to Alcoa in 2000.
At the time Brian Purves, chief executive of Luxfer, said “BA Tubes has been a non-core activity for years.
“The sale to ALUnna offers employees at Redditch greater security within Europe’s largest manufacturer of aluminium tubes, while we at Luxfer can concentrate on developing our core activities in the Gas Cylinder and Elektron divisions.”