Port Talbot firm in liquidation amid turmoil in steel industry

Fairwood Fabrications, based in Port Talbot, has gone into liquidation. A statement issued yesterday confirmed that production ceased at its Llewellyn Quays site on July 8 and the 66 remaining employees have been made redundant.

In total, 250 workers at the engineering company have lost their jobs since January.

The Tata supplier has been battling financial problems since January, according to BBC Wales. It reported earlier in the year that the company approached the Welsh Government asking for £250,000 to help it restructure the company into a smaller operation, but that money was not agreed.

Gherold Davies, the company’s chairman, said “it was like a death in the family”.

Fairwater Fabrications was started by Mr Davies’ father 37 years ago.

Mr Davies said the financial problems were related to the steel industry turmoil but also linked with the delays to Swansea Bay Tidal Lagoon.

On its website the company says it is “one of the largest privately owned employers in the area”.

Sandra McAlister and Simon Barriball of McAlister and Co have been appointed as the proposed liquidators.

Ms McAlister said: “This is a disappointing blow, particularly for the employees who have been made redundant.”

Any parties interested in acquiring the business and assets should contact Ms McAlister.

Fairwood was established in 1979 and developed into a quality provider of fabrication engineering and pipework services.

A Welsh Government spokesman said it had been in discussion with Fairwood “for some months regarding their position” and provided support “where possible”.

Three years ago the company was in WalesOnline’s Fast Growth 50, the annual list of Wales’ fastest growing firms. Then, it had achieved 89.7% growth over two years.

There will be a creditors’ meeting next week in Swansea.

Earlier this week on her first visit to Wales Prime Minister Theresa May pledged to fight for the steel industry.

Also this week, Welsh Secretary Alun Cairns told MPs this week that taxpayers’ money would only be invested in Tata’s steelmaking sites if operations there have a sustainable future.

The possibility of a link-up between Tata’s European operations and Germany’s ThyssenKrupp has fuelled fears for the Port Talbot site’s future.

The Vale of Glamorgan MP said: “The UK Government stands to invest hundreds of millions of pounds in the operation and with that of course would come conditions. And that would offer the reassurance that there would be a genuine strategy because of course we would need to conduct proper due diligence [for] any sort of investment that the taxpayer would support.

“[The] evidence we can see is that ThyssenKrupp is prepared to invest significant sums of money into a joint venture scheme, supported – or with the offer of support – from the UK Government and that in itself we can take encouragement from because that shows they are prepared to spend money, and if you are prepared to spend money then [it’s] fair to assume there’s not going to be the worst possible outcomes.”