Member Article

Firm goes bust in Budget build-up

Business leaders have called on Chancellor Alistair Darling to deliver a budget for jobs - as another North East firm fell victim to the economic downturn.

Metal fabrication company Evenwood Industries, which until recently employed more than 100 people, has gone into administration.

The company, based at Evenwood, near West Auckland, County Durham, made 40 people redundant at the end of last year - and yesterday half the remaining workforce was laid off.

But 37 workers are still employed at the plant and administrators last night expressed hope it could be sold as a going concern.

Despite the latest employment blow, Bishop Auckland MP Helen Goodman, who represents Evenwood, said the Chancellor was “very conscious” of the need to support new jobs, and added “our region will not miss out.”

Ms Goodman said: “I think, in putting his budget together, the Chancellor is very conscious of the need to support new industries and jobs - and our region will not miss out.

“This is a very sad day for everybody who works at Evenwood Industries, and I am very sorry to hear this news. They have clearly been hit by the global recession and I hope people will get the support they need to find other jobs.”

The firm supplies parts for the construction industry, and the downturn in that sector has had a knock-on effect.

One former worker at the company said: “Everybody has been expecting it, we knew it was coming. It is just very sad because people have lost their jobs, and some will probably lose their houses because they can’t pay their mortgages.”

Stephen Thompkins, of the GMB union, which represents workers at the plant, said: “From a trade union point of view, we will be looking to see if there are any orders, to see if it can remain as a going concern.

“If not, it is our priority to make sure all the members get everything they are entitled to.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .