WORKERS have lost their jobs after a steel company went into administration.

Nearly 40 staff at SBV Engineering have been made redundant.

Officials say the firm, based in South Bank, near Middlesbrough, struggled after the liquidation of Redcar steelmaker, SSI UK, last year.

One of the company’s latter contracts was to make and install equipment, known as sun screens, to protect television cameras at Middlesbrough Football Club’s Riverside Stadium.

It also worked across fabrication in the steel, nuclear and oil and gas sectors.

However, administrators from KPMG last night confirmed the burden of SSI’s collapse had become too much, revealing all 38 members of staff had been made redundant after no buyer came forward.

Howard Smith and Jonny Marston, from KPMG’s restructuring practice, who were appointed joint administrators, said while SBV had benefited from a new financial package following SSI’s collapse, which gave some leeway to continue operations, it never fully got over the setback.

Mr Smith, associate partner at KPMG and joint administrator, added: “SBV Engineering has struggled to recover from the loss of a major trading partner and the wider, well-documented challenges facing the UK steel industry.

“We will now work to wind down the business, provide support for the employees and explore options to realise assets.”

The business was only formed in late 2014 following the administration of SBV Fabrication and Site Services Limited.

However, a statement laid out the company's issues, highlighting the impact of Thai-based steel firm SSI’s problems on SBV’s endeavours.

It said: “In October 2015, the business suffered a significant drop in sales after its major customer, SSI UK, entered liquidation, which also left SBV Engineering with substantial losses in relation to the account.

“The business was able to continue to trade following the liquidation of SSI by raising additional finance and rescheduling its major creditors.

“However, it became clear this month it could not continue to service its liabilities, particularly given the burden imposed by the amounts owing from the collapse of SSI, and so administrators were appointed.”

SSI had more than 2,000 staff at its peak but they were made redundant, alongside around 850 in the supply chain, when depressed steel prices and Chinese imports compounded the Thai business’ massive investment to re-light the old Corus blast furnace.

A report from the SSI Task Force, set up in the aftermath of the business’ collapse, last month said the vast majority of the 2,150 people who claimed benefit following the company’s liquidation are now off welfare payments and back into work or training.