Dunfermline’s Simclar Group has gone into administration, putting more than 200 jobs at risk.
Administrators from Deloitte say they are hoping to continue trading at the company which started out in boss Sam Russell’s garage in the 70s while a search for a buyer is launched.
The Simclar Group, which was formed a decade ago, is the parent company of a sub-contract manufacturing group which runs operations in Britain, America, China and Mexico. Its UK operations suffered as a result of delays in bringing new products to market.
The directors of the manufacturing firm appointed Deloitte partners John Reid and Bill Dawson as joint administrators of the company and certain subsidiary companies on Monday.
The administrators are managing the affairs, business and property of the company, which has 217 members of staff.
They said they would continue to trade if possible, with a view to selling the business and assets of the UK operations as a going concern.
The UK operations supply wiring, looms and sheet metal work to a number of blue chip customers including Bombardier and Alexander Dennis. Meanwhile, overseas operations supply electronic manufacturing services.
The Chinese businesses supply backplanes, sheet metal fabrication and cable assembly to blue chip customers such as Ericsson, Motorola and NCR.
The UK operations suffered as a result of investing in a series of new products which it could not bring to market in time due to the various regulatory requirements that had to be met.
This resulted in the UK operations running out of funding, in turn leading the directors to draw the conclusion that the UK arm of the company could no longer trade.
Mr Reid, a partner in Deloitte’s reorganisation services team, said, “Simclar is recognised as a quality electronics manufacturing group with a global presence, a highly-skilled workforce and a blue chip customer base.
“Our aim is to sell the business as a going concern and offer a purchaser the opportunity to exploit these unique characteristics.”
The Simclar Group grew from humble beginnings into a global giant. In 1975 Sam Russell left his job with a multi-national and set up a braiding machine in his garage. After a year he was able to rent a building in west Fife.
Within two years, Simclar had 50 employees and only 12 months later turnover hit the £1 million mark.
By the time it celebrated its silver anniversary it was known as Simclar International, employed 900 and had a $150 million turnover.
Along with much of electronics comanufacturing industry, it saw a substantial decline in business during the following year. It changed its name to Simclar Group a decade ago, and could boast over a million square feet of manufacturing space in four countries on three continents.
In 2005 its sheet metal fabrication plant in Dundee shut down with the loss of 50 jobs. The closure was greeted with fury by employees at the Simclar (Dundee) facility at Dryburgh Industrial Estate.
In 2007 two manufacturing plants in Kilwinning and Irvine in Ayrshire were closed with the loss of 420 jobs.
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