Machinery Firm Runs Into Trouble

As many as 80 jobs are in jeopardy at a Co Armagh farm machinery company, which has gone into administration.

Redrock Engineering has stopped all manufacturing, blaming the impact of the recession.

The accountant called in to run the firm said he will keep it open for business while he searches for a buyer for the business which has been trading for over 33 years.

It is a major exporter of high quality agricultural and construction machinery into the Irish, UK and European markets.

Managing Director of the company, Samuel Hughes, said: "This is a sudden and distressing situation for the directors, management and staff.

"Up until this point we have been a successful company however we have found it increasingly difficult to manage the downturn in spending in both the agricultural and construction markets.

"Over the past 18 months, there has been a very substantial reduction in demand for construction products and the difficult trading conditions in the agricultural industry have resulted in a reduced demand for products, particularly over the past six months.

"We have been faced with major cash flow challenges that have become impossible to sustain. Given the significant financial difficulties we had no choice but to appoint administrators," he explained.

"We have a highly skilled staff who deserve recognition of their talents, hard work, loyalty and dedication to this company.

"I want to pay tribute to them and express my deepest regret that they are facing this uncertainty," he said.

The administrator, Sean Cavanagh of Cavanagh Kelly Chartered Accountants has advised that a review of the company's operations is being conducted with a view to assessing the options open to the business, which may include selling the company as a going concern.


Related Northern Ireland Recruitment News Stories
Click here for the latest headlines.

14 December 2015
265 New Jobs Announced In Athlone And Galway
A total of 265 new jobs have been announced for Athlone and Galway. In Athlone, DPD Ireland will create 200 new jobs over the next five years, with 70 of the vacancies expected to be filled before Christmas. The new jobs are part of a €13m investment, which will see the company double the size of its sorting facility.
01 July 2011
Healthcare Company To Create 100 Jobs In Galway
A global healthcare company headquartered in Massachusetts, US is to establish its International Business Service Centre in Galway creating 100 jobs over four years with the support of Government through IDA Ireland. The company, Alere, develops and manufactures products that provide diagnostics and health management solutions.
13 June 2006
1,000 Jobs To Be Created In Belfast
Around 1,000 jobs are to be created in Belfast, it has been announced. Indian company, ICICI OneSource, one of the country's largest business processing outsourcing (BPO) firms, is to open a call centre in the city, creating over 1,000 jobs over the next two-years.
16 May 2006
Small Business Is Big Business
The Report of the Small Business Forum, Small Business is Big Business, was published and officially launched by Minister for Enterprise, Trade and Employment, Micheal Martin at an event in Dublin Castle.
29 July 2009
M&S Drivers' Strike Looms
It looks likely today that deliveries to Marks and Spencer stores throughout the UK will be hit by a threatened drivers' strike. Some 100 staff at worldwide courier company DHL's centre in Mallusk near Belfast and two depots in England are considering walking out after a pay freeze, the union Unite said.