First redundancies announced at Cleveland Bridge steel firm
53 redundancies have been announced at the struggling Cleveland Bridge steel firm in Darlington.
Days ago, administrators confirmed they intended to restart production next week to fulfill existing orders and were contacting staff about working.
Discussions are ongoing with interested parties to find a buyer for the company.
The company, which employs over 200 people, issued redundancy notices to staff in late July. The company is behind the arch at Wembley stadium, the Sydney Harbour Bridge and the London Shard.
In a joint statement Tees Valley Mayor Ben Houchen, Sedgefield MP Paul Howell and Darlington MP Peter Gibson said:
“The news that 53 members of staff at Cleveland Bridge have been made redundant today is devastating news, and support for those workers affected at this difficult time is being provided through Darlington Borough Council.
With production due to restart soon so that existing orders can be fulfilled, we remain optimistic that a buyer can be found for this world-leading company with a global reputation built on the expertise and skills of its workforce.
We know the administrators are working to keep the key production staff in place with a view to complete orders in progress whilst negotiations with potential buyers continue.
Any deal to save Cleveland Bridge must protect as many local jobs as possible, and we will continue to work with the Trade Unions, the administrators, government and potential buyers to safeguard local jobs.”
Martyn Pullin, David Willis and Iain Townsend of specialist business advisory firm FRP were appointed as Joint Administrators to Cleveland Bridge UK on 22 July 2021.
In a statement, the Joint Administrators say they continue to hold discussions with interested parties having marketed the business for sale. However, for operational and financial reasons, the 53 roles were made redundant. The administrators confirmed the majority of roles affected are office-based.
The remaining 128 roles remain furloughed as part of the Coronavirus Jobs Retention Scheme pending the intended restart of production.
A small handful of staff have since left their positions voluntarily.
Martyn Pullin, Partner at FRP and Joint Administrator of Cleveland Bridge UK, said: “We remain focused on restarting production to support clients with live project work while pushing forward ongoing talks with interested parties.
Regrettably, a number of roles have been made redundant as we restructure the business. Our team is on site to support impacted staff through this difficult period and assist in making claims through the Redundancy Payments Service.”