South East Wales

BKF Plastics enters administration threatening 39 jobs

A Blaenau Gwent plastics company has gone into administration threatening the loss of nearly 40 jobs.

BKF Plastics Limited in Tredegar makes mouldings for the furniture industry and stadium seating.

The administrators, Grant Thornton, who were called in earlier this month, have made 19 of the 39 staff redundant.

But a spokesman said they hoped to sell the business as a going concern, keeping the rest of the workforce in employment.

BKF is a long-standing supplier to the furniture industry with extensive experience in stadium seating and plastics for use outdoors.

Alistair Wardell and Nigel Morrison of Grant Thornton were appointed as joint administrators on 2 August.

Mr Wardell said: "We are continuing to trade the company in the short term as we seek to achieve a going concern sale of the business.

"The company had traded profitably for many years, but losses were suffered in 2010 largely due to raw material price increases.

"Although BKF was able to agree price rises with some of its customers, it experienced significant cash flow pressure in the first half of 2011 and was unable to secure sufficient investment to enable it to trade out of its financial difficulties."

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