Downturn in orders sends boat builder into liquidation (From The Northern Echo)

Downturn in orders sends boat builder into liquidation

6:01am Friday 8th December 2006 in

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ABOUT 30 jobs were under threat last night after it emerged that a Trimdon-based boat building business had run into financial difficulties.

The Northern Echo has learnt that canal boat maker South West Durham Steelcraft is in liquidation, after a prolonged shortage of work and lack of orders.

Steelcraft, which employs about 30 people at its base on Trimdon Grange Industrial Estate, remained closed yesterday. The company is understood to have been consulting local business support organisation the Shildon and Sedgefield Development Agency in an attempt to save the company.

Last night, Steelcraft's situation was said to be a "blow for the community," and workers at the site, in Prime Minister Tony Blair's constituency, spoke of their fears at being out of work only weeks before Christmas.

One worker said the staff's hours had been reduced recently, but they did not know the extent of the situation.

The worker, who asked not to be named, said: "This is bad news for us - things are obviously worse than we thought. We don't know what's going to happen - but my concern is that Christmas is not even three weeks away.

"There's never a good time to be out of work, but this must be the worst."

The company was set up in 1989, and is well regarded in the industry.

It has built more than 500 boats, and has designed and built shells for some of the country's largest boat companies, including Simolda and Pennine Cruisers.

Councillor Lucy Hovvels, Mayor of the Sedgefield borough, which includes Trimdon, said it was bad news for the area.

She said: "We are a small community, and we rely on small local companies like this to help generate income back into the area.

"This is a real blow for this community, and the factory employs a lot of local people.

"We rely on local businesses like this one helping the economy.

"We are all hoping there can be some solution soon, especially with it being so near Christmas."

John Flynn, Steelcraft's founder and owner, last night said he did not want to comment on the situation.