Fri, 23 Jul 2021 | ADMINISTRATION
Structural engineering firm Cleveland Bridge has fallen into administration, with a buyer now being sought for the Darlington-based firm. The firm’s collapse came after the COVID-19 pandemic caused delays to numerous global infrastructure projects.
Unconfirmed reports indicated that budget problems originated with delays to a major project in Sri Lanka. The company had reportedly been in talks for several months over a potential £6 million funding package from its owner, Al Rushaid Group, but were unsuccessful in securing this.
Headquartered in Darlington and at an engineering facility in Newport, Wales, Cleveland Bridge employs around 220 staff. The company has been involved in major worldwide structural engineering projects, including the arch at Wembley Stadium, the Shard in London and Sydney Harbour Bridge.
In addition to its Darlington base, the company has manufacturing facilities in Dubai and Saudi Arabia and can produce around 150,000 tonnes of steel annually. It engages 48 contractors in Darlington and 50 more at other sites. The business was acquired by Saudi firm Al Rushaid Petroleum Investment Company in 2000.
With a full order book covering the next 18 months, in addition to its skilled workforce, expertise and prominent standing in the industry, there is optimism that a buyer for the firm can be found. However, administrators from FRP Advisory have warned that the business will be wound up unless it receives significant investment.
FRP Advisory partner Martyn Pullen said: “Cleveland Bridge UK has been a flagbearer for cutting edge British engineering for more than a century. But no business is immune to the far-reaching impact of the pandemic, which has delayed major infrastructure projects around the world and put significant financial pressure on the teams behind them.”
“It also has great potential and should attract interest from the steel fabricants sector and other firms looking to break into the specialist bridge building market. Unfortunately, without significant investment, the business will be wound up.”
View the latest distressed UK businesses here.
This is a rare chance to acquire a thriving building and construction business in North West England with a solid reputation.
A well-established player in the architectural aluminium systems, door hardware and ventilation products market, based in the South of England and serving a long-standing customer base in the UK commercial construction industry.
The company’s core activities are interior design, office and premises refurbishment, fit-outs and alterations. Established in 2005, our client operates a cash flow and profit-friendly business with minimal staffing overheads which relies on trusted...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.