Abattoir goes into administration

The present abattoir opened in January 2007

An abattoir has gone into administration - three weeks after it laid off 50 workers.

Farmers' unions claim some of their members are owed thousands of pounds by Cig Cibyn in Caernarfon, Gwynedd.

Gwynedd County Council said it was a "blow" as Cig Cibyn provided a service to agriculture which created jobs.

The assembly government was criticised for not offering financial help, but it said rules did not permit it to intervene in every circumstance.

The company mothballed its operations on 22 October as a result of a downturn in the economy.

It had wanted the assembly government to provide a short term loan to help with cash flow problems.

Cig Cibyn has been plagued by problems since it opened in January 2007.

It had to close for a month in August 2007 because of a foot-and-mouth outbreak in Surrey.

It reopened in September but was forced to close for another month when all exports to Europe were banned.

A spokesman for Gwynedd council said Cig Cibyn was an example of a company for which there was a need in the area.

"It provided a service for local farmers, and employed people locally," he said.

"Unfortunately the company has had to face numerous national crises such as the foot and mouth outbreak, in addition to the current difficult financial situation."

He added that the council had worked closely with Cig Cibyn over the years to support them as they struggled to overcome the difficulties.

"Unfortunately it appears that the company is unable to carry on due to the challenging economic situation which exists at the moment," he said.

"The council will be looking to see how it can help those who have lost their jobs, and will also be speaking to the assembly government, to see how we can work together to support the agricultural sector locally," he added.