Administrator puts Cleveland Bridge up for sale

Aaron Morby 3 months ago
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Administrators have started the search for a buyer for structural steelwork contractor Cleveland Bridge.

Around 320 jobs at risk if a buyer is not found
Around 320 jobs at risk if a buyer is not found

FRP was appointed as administrator today and signalled that it was urgently seeking to find an investor in the failed business to help protect as many jobs as possible.

Talks are underway with CBUK’s clients to discuss continued support on live projects and with staff ahead of first redundancies.

The business employs 221 staff at its headquarters in Darlington and an engineering site in Newport, South Wales.

The business also has 48 contractors in Darlington and around 50 contractors on various sites.

Since 2000, CBUK has been part of the Al Rushaid Group – a Saudi Arabian industrial conglomerate.

The UK business’ finances were severely impacted by delays to projects in the UK and internationally as a result of the pandemic, and it now needs significant further investment.

Martyn Pullin, Partner at FRP, 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.

“CBUK is a business with a proud history and a formidable track record of engineering excellence.

“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. That is why we’re calling on any interested parties to come forward.

“Regrettably, the business is unable to continue operating at its current capacity.”

He added: “We are urgently reviewing contracted work in progress to determine the shape of the business going forward.”

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