Acheson Holdings Limited has announced its Precast company, Acheson & Glover Precast Limited, has been placed into administration.
The company currently employs 105 people, 20 of whom are in GB with the remainder at Ballygawley.
The Group’s other trading company, Acheson & Glover Limited which employs around 230 people will be unaffected.
The decision follows an in-depth review of the Precast business over a 12 month period following a downturn in market demand for its flooring and precast in the UK.
The Directors of Acheson Holdings Limited said its Precast business had been losing money for some time.
In 2018 the company had already consolidated and closed one of its two factories, however demand has continued to fall by between 35 and 40% leading to further financial losses leaving the company’s Directors reluctantly with no option but to call in administrators.
“We are disappointed to have to make this decision and we will be doing all we can to minimise its impact," they said in a statement.
“Our people are the very heart of our business and we fully understand how difficult this will be for our colleagues so the decision to cease precast manufacturing has only been made after lengthy consideration.”
“Earlier this year we consolidated our precast operation into one plant and set about a major cost-reduction programme. However, both margins and volumes continued to fall.”
“Over the past 18 months our Acheson & Glover Limited business which produces high added-value products, largely for the specification market, has continued to grow profitably. This business is now performing more strongly than at any time in the last eight years with a strong order book for high added-value products aimed at the Specification market across the UK and Ireland. We can assure our staff, customers, suppliers and other external stakeholders that our Acheson & Glover Limited business is unaffected by today’s announcement.”
Mr Tom Keenan and Mr Scott Murray from Keenan CF have been appointed as Joint Administrators for Acheson & Glover Precast Limited.