Nu-Track cites clients not paying ‘substantial debt’ primary reason for permanent closure

Ballymena bus and coach manufacturer, Nu-Track has confirmed it has permanently closed and let its 65 staff members go, citing clients owing “substantial debt” as its main reason for shutting.

In a statement to the Belfast News Letter, the company, said: “It is with profound regret that the management of Nu Track Ltd announce the decision to close our business operations in Ballymena on Thursday, September 22 2022.

“We offer our heartfelt thanks to our talented and loyal employees that have given so much to the company, particularly during the difficult trading period of the last few months.

"The position of renown that Nu Track products have enjoyed for decades has been due to the skills and workmanship of our coachbuilders. We are proud to have been Northern Irelands leading provider of wheelchair accessible buses and mobile libraries, serving government and private clients with vehicles which have become the industry standard throughout Great Britain.

“Every effort has been made to avoid closure; however, several factors exist that limited the options available to us. Primarily, during 2021 we committed to build over 130 vehicles for a local client who withdrew after approximately 70 vehicles had been delivered, owing a substantial debt to this company, which we are now forced to pursue in the courts.

"This, combined with public sector clients who, despite our requests, were not willing to make any payment towards their orders prior to delivery of their completed vehicles, placing an unreasonable strain on cashflow.

"Our inability to fulfil this order without customer funding resulted in the base vehicles being removed by the client, bringing an end to our shop floor production, and consequently causing job losses. On reflection we should not have entered imbalanced contracts of this type, where the customer, although a government body, had no contribution to the build cost.

“Increasing component costs, and unprecedented rises in base metal prices have pressurised profit margins for many businesses, including ourselves. Reduced production volumes and extensive delays in bus chassis supply from all manufacturers in our supply chain have made it impossible to fulfil customer orders within schedule, resulting in the inevitable cancellation of many orders.

"This aspect has been most pronounced in fully electric vehicles. It is therefore the correct decision to cease operations in avoidance of a worsening cash position, in order to protect creditors. We wish to thank those creditors that have shown overwhelming support and cooperation over the past few months, assuring them that every effort will now be made to realise the value of the business for their benefit.”

“We have sought to close our operations at a time when employee demand within our sector is high in the local area. Care of our staff being paramount. Despite the unhelpful and damaging interference of union representatives in the past, we are hopeful that at this time, the union shall not cause any interruption to the fair treatment of our valued people.

“We fully understand the frustrations of a small number of our staff, and their legitimate right to express that frustration in the peaceful and calm way they did so on Wednesday outside the factory premises.

“We were pleased to have met with the representatives of this group on Wednesday and discuss their concerns openly and respectfully. At this meeting we were able to provide assurances around final wages and pension payments, with the representatives being satisfied that all payments had been made at that point. Further clarification was also given on the redundancy process, to the satisfaction of those present.”