Welsh steel stockholder Ultimate Steel Fabrications has gone into administration after accruing debts totalling £160,000 ($258,270), according to a statement issued by insolvency practice SFP Group on Friday May 11.
Based in Caerphilly, Ultimate Steel supplies steel to the construction sector. It mainly holds stocks of stainless and engineering steels but also supplies aluminium, SFP added.
Poor demand for construction projects in the current economic climate is hitting suppliers and their margins, according to SFP.
“There are still too many suppliers chasing too little business,” group partner and administrator Simon Plant said.
The stockholder had been trading for six months and, according to SFP, annual turnover would have been about £800,000.
In February, Ultimate Steel secured a loan facility with Aldermore