By Liz White, ERJ staff
Birmingham, UK-Rubber and plastics group United Polymers Ltd is up for sale. The group's Maerdy, Wales factory and its Corsham, UK subsidiary are under administration by Adrian Wolstenholme and Alastair Beveridge, partners in Kroll's Corporate Advisory & Restructuring Group, based in Birmingham, UK. The joint administrators were appointed 21 Oct.
United Polymers, headquartered in Maerdy in South Wales, makes moulded parts and is primarily an automotive supplier.
A separate subsidiary in Hranice in the Czech Republic, which makes gaskets and mouldings, is unaffected by the administration process.
Turnover of the Maerdy and Corsham businesses was more than Â£18 million last year and they employ about 375 people-310 in Maerdy and 65 in Corsham.
The administrators say while various steps to restructure the Group have been taken, ongoing losses-largely due to under-utilisation of capacity at the Maerdy plant-have led to the current position.
Some 48 employees at Maerdy have already been made redundant as part of the restructuring process.
The administrators are assessing the likelihood of selling the businesses as going concerns and will soon advertise the businesses for sale.
Pointing out that the group has â€œa number of blue-chip automotive clients,â€ Wolstenholme said it has â€œstruggled recently in what is a highly competitive market, which has ultimately led to administration being necessary.â€ The administrators will advertise the businesses for sale and intend to continue to trade whilst buyers are sought, he added, in a Kroll statement.