Fears over 350 jobs at troubled car parts firm

HUNDREDS of workers face an uncertain future at a West Midlands supplier of car parts after it was placed into administration.

Covpress Assembly, which employs 350 people at its factory in Canley, has been placed under the control of administrators from financial services firm Deloitte.

In a statement, Deloitte said: “For the last couple of years, its efforts to grow its customer base have not generated the anticipated profitability.

“The company had been seeking a potential buyer. However, this was unsuccessful and the directors had no alternative but to place the company into administration.

“We are hopeful that the adminis- tration process might now draw out interest in a sale of the business.

“The business operates from a state-of-the-art facility, with a skilled workforce, capable of working in partnership with global automotive companies.

“Meanwhile, we are continuing to trade the business and work with customers to fulfil existing orders.”

Covpress Assembly is the associated company of Covpress which went into administration last September.

In January, 740 jobs were saved when Covpress was bought by Liberty House Group and now trades as Liberty Pressing Solutions.

Covpress has grown significantly since its majority shareholding acquisition by Chinese company Shandong Yongtai Group in 2013 in a £30 million deal.

Part of its growth saw it acquire the nearby Honda supplier UYT, renamed Covpress Assembly, safeguarding 400 jobs at the time.