Redrock Engineering in Armagh has called in administrators after running into major financial difficulties, putting 80 jobs at risk.
The directors of the company, which exports agricultural and construction machinery and has been in business for more than 33 years, are still hoping the company can be rescued.
Administrator Sean Cavanagh of Cavanagh Kelly Chartered Accountants is conducting an review of its operations to assess the options open to the business, which may include selling the company as a going concern.
The company will continue trading in the interim, but said all manufacturing has been suspended.
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.”
He added: “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.”
The company, which employs 80 people, exports to to the Irish, UK and European markets and said it has consistently |invested in research and development of new products.
“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,” said Mr Hughes.
Ulster Unionist MLA for Newry and Armagh Danny Kennedy said it would be huge blow to the area if Redrock went out of business.
“It’s very serious news for the local community. It is a well known and long established company and the owners are all well respected.
“Any possible assistance that can be given by Invest NI or DETI should be given to ensure that jobs are protected.”