No aluminium plant buy-out grant

Administrators say two parties are still interested in buying the plant

The management team at a Conwy Valley alumninium plant has been told the Welsh Assembly Government will not give them a grant to help buy the business.

Deputy First Minister Ieuan Wyn Jones said the business plan for Dolgarrog Aluminium was unviable.

A spokeswoman for the administrators said the decision was unfortunate and until a buyer was found the business would continue to be wound down.

The plant currently employs 45 workers who are finishing off existing orders.

Brian Green, joint administrator and partner at KPMG Restructuring in Manchester, said: "It's unfortunate that the Welsh Assembly has taken this decision.

"We are now waiting to see whether any of the other parties with whom we have had recent discussions will make an offer for the business, although as yet, no formal bids have been received."

Speaking on BBC Radio Wales Mr Jones, the economic development minister, said: "The business plan does not stack up and unfortunately we are unable to proceed.

"There is obviously the interest of other companies - that is being pursued, I understand, with the administrators, although I also understand from the administrators no bids have been made as such, for the company.

"Hopefully there will be a bid on the table shortly but we can't promise that that will happen obviously."

Conwy Council leader Goronwy Edwards said he was disappointed but not surprised by the decision.

He told BBC Radio Cymru that he sensed there "wasn't much commitment on their part" after a meeting last week, attended by Mr Jones.

Mr Edwards added: "These are very difficult jobs to replace - this is one of the last such manufacturing companies in north Wales, and it will be hard for these workers to find new jobs."

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

It was set up five years ago following a management buy-out of the former Alcoa plant and it is Britain's only integrated casting and rolling aluminium mill.