Aluminium plant in administration

The plant is marking its 100th anniversary this year

Administrators have been appointed at an aluminium plant in the Conwy Valley, which employs 170.

Dolgarrog Aluminium produces a range of products, turning over £19m last year, and is a major employer in the area.

Administrators KPMG said they hoped to sell the plant as a going concern.

Deputy First Minister Ieuan Wyn Jones said ministers want to do "everything they can" to help and a short term funding package has been agreed to help the firm keep trading.

The package has been agreed in principle involving Finance Wales, a Welsh Assembly Government subsidiary.

A Finance Wales spokesman said: "This should help to improve the prospects of finding a suitable buyer for the business."

We do recognise that these are obviously good quality jobs which are rare in an area like this and that's why we want to do everything we can Deputy First Minister Ieuan Wyn Jones

Mr Jones said: "That enhances the chances of being able to sell the company as a growing concern and protect as many of the jobs as we can.

But he warned: "I don't want to raise people's hopes too highly because obviously this is a very competitive industry as well.

"But we do recognise that these are obviously good quality jobs which are rare in an area like this and that's why we want to do everything we can."

Five years ago, the Welsh Assembly Government backed a management buy-out with a £3m grant after previous owners, Alcoa, said they would close the site.

In a statement, KPMG Restructuring said the plant was the only "fully integrated casting and rolling aluminium mill in the UK".

Union officials hope to meet administrators later

The company supplied products to industries including electrolytic zinc extraction and aerospace engineering.

The GMB union, which represents some workers, is trying to arrange a meeting with the administrators.

The administrators said the aerospace market was a "significant opportunity" for the company and it had manufacturer approvals from Airbus UK and BAE, among others.

Brian Green, joint administrator and partner at KPMG Restructuring in Manchester, added: "We are currently in dialogue with customers and suppliers with the intention to trade the business whilst exploring the possibility of achieving a going concern sale."

Local AM Gareth Jones said he was "cautiously optimistic" that a buyer could be found.

100th anniversary

"While the company has run into short-term cash-flow problems, there has been considerable investment recently into the works, the market is still there for its products and the highly-skilled workforce will be an asset to any company taking over," said Mr Jones.

On its website, Dolgarrog Aluminium Ltd describes itself as "the major employer" in the area and says it plays "an integral part in the local community" supporting charities, schools, churches and other activities.

The plant celebrates its 100th anniversary this year.

In 2001, the US-owned firm Alcoa had threatened to close Dolgarrog with the lost of 189 posts as part of cuts from its 140,000 global workforce.

This followed the downturn in the aviation industry in the wake of the 9/11 terror attacks in the US.