Hundreds of people are to lose their jobs after administrators at Kidderminster-based Ceramaspeed announced they were winding down the company.
Ceramaspeed, which makes heating elements for cookers and employs about 300 people, went into administration on Monday after seeing its market freeze because of a collapse in consumer demand.
But administrators Grant Thornton said they were now winding down the company after customers who were owed money refused to co-operate, and most of the workers at the plant would be losing their jobs.
Most of the workers will be losing their jobs, with just a few retained to oversee the winding up of the company.
Neil Tombs, administrator and recovery and reorganisation partner at Grant Thornton in Birmingham, said: “Despite our efforts, we have not been able to secure the co-operation of Ceramaspeed’s main customers, resulting in the need to wind down trading in the UK arm of Ceramaspeed.
“Unfortunately, it is therefore necessary to make the majority of the employees in Kidderminster redundant. The employees that are affected by this have been informed today. A number of people will be retained for a short period to assist with the completion of work in progress and the orderly closure of the facility.”
The £46million company, which employs people at its headquarters in Oldington in the town, made ceramic hobs for some of the biggest names in kitchen appliances, and had operations in the US and Poland.
Earlier this year the company said it was planning to move production to Poland to save money, leaving just 100 people in Kidderminster. It blamed its difficulties on the high cost of manufacturing in Britain compared to Eastern Europe, and said it needed to remain competitive after a number of competitors had already transferred their production overseas.