Page last updated at 13:26 GMT, Tuesday, 17 February 2009

Staff at car parts firm lose jobs

Inside Florform
Floform was one of north Powys' oldest employers

Nearly 80 people have lost their jobs after a Powys car parts company ceased trading.

Floform in Welshpool, which supplied a number of manufacturers including Volvo, went into voluntary administration last Thursday.

Administrators have now said the business is no longer viable as key customers have withdrawn their orders.

A total of 74 people have been made redundant, while six are being kept on to help administrators.

Peter Holder, a partner with administrators Zolfo Cooper said: "Much has been made of the marked slowdown in the automotive sector and we're clearly seeing the impact of these unprecedented market conditions on freight and commercial vehicles.

"Those pressures have led many of Floform's customers to significantly reduce their production schedules, resulting in a liquidity crisis for this business.

"Since our appointment, we have worked with all stakeholders in an attempt to secure a future for the business, but when key customer support was no longer available, the business was simply unsustainable."

Mr Holder added: "We have informed each of the affected employees and their union of the situation and are grateful for their dedication and professionalism at this difficult time."

Floform's directors had blamed the difficulties on cuts to the firm's order book, which they said had resulted in "significant cash-flow difficulties".

Last Thursday, Zolfo Cooper said it was exploring "all options available for the business".

More than 100 jobs were saved at Floform in 2007 following a management buy-out.

The company had been on sale for some time, and a year earlier had made 60 workers redundant after losing a major order from the United States.

Many of its products, which included diesel injector sleeves and other specialist fixings, were exported to Sweden for use in Volvo trucks.

It was regarded as one of north Powys' largest and oldest employers.

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