ASW Holdings forced into administrative receivership

ASW Holdings forced into administrative receivership

Cardiff based specialist steelmaker ASW Holdings was pushed into receivership on July 10, 2002 for the reason that the company was no longer able to secure the continued support of its banks. This was due to a dispute betwen its banks Lloyds TSB and NatWest and credit insurer Gerling NCM Currently, trading and production keep running however jobs of 1.000 employees in Cardiff, 300 in Sheerness and Kent and 30 in Bellfast are under threat which might negatively effect the Welsh economy added up to the closure of Ebbw Vale Steel plant that costed 970 jobs. ASW's chief executive Graham Mackenzie emphasized that the company was seriously effected by the strong pound coupled with cheaper imports from Eastern Europe triggered by the threat of US safeguard measures on steel imports. He added that staff could keep their jobs while the receivers sort out the future of the business. Richard Hill and Roger Oldfield of KPMG are appointed as joint administrative receivers for ASW and its trading subsidiaries. KPMG will continue discussions with potential buyers that ASW have been seeking for the last several months and they state that they will review other options like seeking other buyers for all or parts of the business. The group has a turnover of £270million and produces mainly for construction and engineering industries- among its produts are rebar, merchant bar, nails and mesh. However it was announced last month that they were experiencing difficulties due to shrinking demand for their products and the reduced margins. Following the anouncement to the London Stock Exchange shares in the company were suspended at 2 1/2p.