COVENTRY MESSAGE BOARD

Chinese-owned major city employer in trouble but administrator says no immediate plans for redundancies

Around 800 jobs are at risk after Covpress, one of Coventry’s biggest employers, went into administration.

Administrators from Grant Thornton have acted quickly to assure staff at the Canley car parts manufacturer that there are no immediate plans to make redundancies as they try to stabilise the firm.

The Burnsall Road firm had been enjoying growth since it was taken over by Chinese firm Shandong Yongtai in a £30million deal in 2013, that was one of the biggest investments by a Chinese firm in UK industry at the time.

Joint-administrator Eddie Williams, of Grant Thornton, told BBC Coventry and Warwickshire: “The immediate priorities are to try to stabilise the business and to talk to the employees and update them about the position.

“The message to the employees is very much that there are no current plans around any redundancies.”

Covpress makes body panels for Jaguar Land Rover and Renault, among others, and exports parts across the world.

The company’s website says that since the Chinese-led takeover, £25 million has been invested in the Canley plant in both machinery and extra staff, describing it as “a real success story”.

Last year, the company also bought the nearby Honda supplier UYT, renamed CovpressAssembly, in a move that safeguarded 400 jobs at the time.

Football pundit Gary Newbon has had an ambassador role with CovPress for more than two years and writes a column for the Telegraph sponsored by the firm.

He said: “I am very sad to hear the news about the company going into administration. I know that Kit Halliday, the CEO, would have done his very best to avoid this.

“I don’t know if Brexit had an impact. It is very sad for everybody involved and if Grant Thornton can do what they can to safeguard the jobs then that would be fantastic.”

Covpress Assembly Limited is not subject to the administration.

The Burnsall Road firm had been enjoying growth since it was taken over by Chinese firm Shandong Yongtai in a £30million deal in 2013, that was one of the biggest investments by a Chinese firm in UK industry at the time.

Covpress workers remain hopeful despite company going into administration

Workers at Covpress remain hopeful the firm can have a bright future despite going into administration.

Administrators from Grant Thornton were called into the firm on Thursday after the company experienced cash flow problems.

The administrators have moved swiftly to reassure staff at the Canley automotive manufacturer that it is business as usual.

They have said there are no plans for redundancies as they seek to stabilise the firm and find a buyer for it.

Workers were spoken to on Thursday and Friday, with face-to-face meetings also taking place.

Joint-administrator Eddie Williams, of Grant Thornton, told BBC Coventry and Warwickshire: “Obviously it has been a difficult 24 hours.

“We have tried to get the message out to workers as quickly as possible and we have been having face-to-face meetings.

“The majority have now had face-to-face meetings with administrators.”

Workers leaving the factory on Friday morning for their morning break were mostly tight-lipped, saying they had no comment to make but some spoke to the Telegraph revealing a mood of uncertainty mixed with optimism.

One worker said: “It’s all a bit up in the air at the moment.”

Another said: “Nobody really knows what’s going to happen - the administrators came into the company yesterday and we had a meeting.

“I am a little bit worried. We don’t really know what has happened but I expect everything will be fine when a new owner comes in and there is new investment. I certainly hope so.

“At the end of the day this is a big company and a good company to work for.

“They pay on time and there is always plenty of overtime.”

Covpress: Union optimistic no more job losses at Canley engineering firm

The trade union Unite says it is optimistic of a good outcome for workers at Covpress, the Canley firm which went into administration last month.

Unite said following talks with administrators from Grant Thornton it had been given an assurance that no more job losses were envisaged.

Although the administrators have made a small number of staff redundant and ended a number of consultancy agreements, Unite has said none of its members have been affected.

The union said in addition many workers were being asked to work overtime, due to the company’s full order book.

Another bonus was that temporary workers were being mad full-time in line with an existing agreement between the automotive manufacturer and Unite.

Following talks between the union and the administrators on Tuesday this week, Unite regional officer Adrian Ross said: “There have been no redundancies at Covpress and there were full overtime shifts worked on both Saturday and Sunday last weekend.

“Order books are full for the foreseeable future, with overtime planned to the end of November to support Jaguar Land Rover production.

“The administrator has informed the workforce he does not envisage any job losses and all temporary workers will be made full-time on their first anniversary in line with the temporary workers’ agreement the company has with Unite.”

Order books are full for the foreseeable future...

740 jobs saved as Liberty House buys Covpress



Almost 750 jobs have been saved at Canley engineering firm Covpress after it was bought by the international industrial group Liberty House.

The deal ends a period of uncertainty for 740 workers at the vehicle pressings and assemblies manufacturer, which had been in administration since September last year.

Their jobs have been secured by the acquisition, which Liberty House described as “a strong strategic fit” with its existing UK businesses in the automotive supply chain.

Covpress, which will be renamed Liberty Pressing Solutions, will sit alongside Liberty Industries Group, part of Liberty House Group, which already has 17 engineering businesses employing more than 1,000 people across the West Midlands.

The deal, which completed with administrators Grant Thornton late on Tuesday night, was hailed as a huge vote of confidence in Covpress’s 33,000 sq m plant, which has been on its Burnsall Road site for 120 years.

Liberty and sister company SIMEC say they aim to reduce reliance on imports and supply UK vehicle manufacturers with more components made from British aluminium and steel using renewable energy and recycled metal.

Members of the pension scheme can now look forward to receiving their benefits in full rather than reduced benefits from the Pension Protection Fund.

Coventry car parts supplier put in administration



A car parts supplier which employs about 350 people in Coventry has been put into administration.

CovPress Assembly Limited, which has a £40m turnover, has "not generated the anticipated profitability" said administrator Deloitte.

No redundancies have yet been announced, administrators said.

Associated company CovPress Limited was recently bought by Liberty House, securing 740 workers' jobs at a plant in Canley.

The business will continue to trade and work with customers to fulfil existing orders, Deloitte said.

Administrators said the company had been seeking a potential buyer, however, this was unsuccessful and the directors had no alternative but to place the company into administration.

Matt Cowlishaw, joint administrator, said: "We are hopeful that the administration process might now draw out interest in a sale of the business.

"The business operates from a state of the art facility, with a skilled workforce, capable of working in partnership with global automotive companies. Meanwhile, we are continuing to trade the business and work with customers to fulfil existing orders."

Jobs lost at Coventry car parts supplier CovPress



Administrators say 85 jobs will go at a Coventry car parts supplier as a buyer for the whole of the business could not be found.

Deloitte was appointed to secure the future of CovPress Assembly Limited in April.

It came after the firm, which employs about 350 people, had "not generated the anticipated profitability".

Deloitte said on Tuesday it would "continue to seek interest in the remaining business".

In a statement, Deloitte said: "Unfortunately, despite a wide marketing process including contacting over 30 potential buyers, no parties remain interested in progressing a going concern sale for the whole business.

"Whilst the administrators will continue to seek interest in the remaining business, due to the resourcing of some customer work it is currently anticipated that there will be 85 permanent employee redundancies, 30 of which are likely to be voluntary."

Associated company CovPress Limited was recently bought by Liberty House, securing 740 workers' jobs at a plant in Canley.