Rowecord Engineering Faces Uncertain Future

Rowecord Engineering, a company known for its innovative approach to engineering, is facing an uncertain future. The company's financial struggles have been well-documented, with a significant decline in revenue over the past few years.

Their financial struggles have been attributed to a combination of factors, including increased competition and a decline in government contracts. The company's inability to adapt to these changes has left it struggling to stay afloat.

Despite these challenges, Rowecord Engineering has a talented team of engineers who are dedicated to their work. The company's commitment to innovation and customer satisfaction has earned it a loyal customer base.

The company's future will depend on its ability to navigate these challenges and find a way to regain its footing in the market.

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Rowecord Engineering Ltd was incorporated by Benjamin Hoppé in 1967 to carry out structural steel fabrication and erection.

The company started small, but quickly grew, with a turnover of £7.3 million in 1987 and 156 staff.

In 1988, Rowecord Engineering expanded its capabilities by acquiring Braithwaite assets, which added expertise in fluid storage systems, including modular, pressed steel tanks.

This acquisition also increased the company's capacity for steel fabrication and allowed it to move to a new location on the River Usk.

Group turnover peaked at £133 million in 2013, a significant increase from the £18.6 million recorded in 1993.

The company had over 1,000 employees in 2012, with Rowecord Engineering Ltd accounting for approximately half of the group's staff and turnover.

Rowecord Engineering Ltd and its subsidiaries became directly owned by Rowecord Holdings Ltd in 1993, a move that would later protect the other businesses from creditors.

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Rowecord has been put into administration with hundreds of jobs under threat, after its board of directors exhausted all options to keep the business afloat.

The administrators, led by Alistair Wardell, will explore which parts of the business can be salvaged and whether any jobs can be saved.

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A small number of employees will be retained in the short term to complete work in progress.

It's likely that the administrators will have to liquidate the business and sell assets to recover monies owed to creditors.

Rowecord has a workforce of nearly 600 employees, with the majority in manufacturing roles, and will confirm the scale of redundancies later this week.

Administration is a serious step that can have far-reaching consequences for a business and its employees.

A business can be put into administration when it's struggling financially and can't pay its debts. This is what happened to Rowecord, a structural engineering firm with hundreds of jobs under threat.

The administrators will try to sell the business to a trade buyer or liquidate its assets to recover money owed to creditors. It's unclear what will happen to Rowecord, but it's likely to have an impact on other companies along the M4 corridor that supplied the firm.

Alistair Wardell, the senior partner at Grant Thornton in Cardiff, will lead the administration process and try to salvage parts of the business to save jobs. He's described the situation as a "devastating blow" for the Welsh economy.

The scale of the redundancies at Rowecord will be confirmed later this week, but only a small number of the workforce are likely to remain.

It's not uncommon for family-owned businesses to struggle with debt, as seen with Rowecord Engineering, which collapsed under heavy debts three years ago.

The Hoppé family was able to salvage some of their businesses by trading under Rowecord Holdings, showing that even in tough times, there's often a way to recover.

Privately-owned Rowecord Engineering was Wales' biggest steelwork contractor before its collapse.

Specialist water tank fabrication firm Braithwaite Engineers, owned by the Hoppé family, is now returning to constructional steel, a move that's allowing the business to invest in new equipment.

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The company is establishing a structural steelwork fabrication facility at a site in Baglan, Port Talbot, which will give them a 25,000 sq ft factory and a three and a half acre secure yard.

This will enable them to produce structural steel components up to 45m long, thanks to new equipment being fitted, including a computer-controlled profiling machine that can cut, drill and scribe steel plates up to 16m long.

The jobs created by this new facility are being taken up by people local to the area, which is great news for the community.

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