Redundancies for electronic firm

Cemtron is one of Scotland's largest electronic manufacturing services

More than a quarter of the jobs at one of Scotland's largest electronic manufacturing service businesses are to be made redundant.

Administrators of Cemtron, which is based at Dalgety Bay in Fife and employs 153 staff, had said there would be no redundancies.

But now administrators Tenon Recovery have said 41 of the 153 workforce would be cut with "immediate effect".

The company went into administration on Wednesday 8 October.

Administrators Tom Maclennan and Kenny Craig, of Tenon Recovery, will continue trading as Cemtron and are seeking a buyer for the firm as a going concern.

Joint administrator Tom Maclennan said he had received 25 enquiries for the business and had already completed four site visits, with further visits expected.

He said: "We undertook a detailed review of the company and it quickly became clear that in order to stabilise the business we had to reduce costs.

"We very much regret the redundancies, and will provide as much support as we can to those affected. We are encouraged by the level of interest in Cemtron, and are now focused on the sales process.

"Cemtron has a good reputation in its markets and presents a good acquisition opportunity for a business targeting the electronic manufacturing services sector."

He added that the administration was caused by trading losses, cash flow and funding difficulties.