Jobs lost as Shaftec goes into administration and ceases trading

The majority of Shaftec’s workforce have been made redundant after the remanufacturer went into administration and ceased trading.

Despite an “extensive marketing process”, a buyer for the Birmingham-based business could not be secured and, consequently, administrators were called in.

The company, which remanufactures steering, suspension and brake parts, had faced “increasing financial pressure” as a result of “challenging trading conditions”. Rising costs and intense competition from lower-cost imports were cited.

While most of Shaftec’s 90 employees have been made redundant, a small number have retained temporarily to assist with the wind-down of operations. All affected staff are being supported by FRP Advisory, the administrator, to assist with redundancy applications.

In a statement, Anthony Collier, joint administrator of Shaftec Automotive Components Limited and of FRP, said: “Shaftec was a well-respected name in the UK automotive aftermarket with a strong heritage spanning more than four decades. Regrettably, it has come up against strong economic headwinds felt across the industry and, despite significant efforts to secure a sale, it was not possible to find a buyer for the business.

“Our immediate focus is on supporting affected employees and ensuring an orderly wind-down of the Company’s affairs.”