A Londonderry engineering firm employing over 80 people have confirmed they have gone into administration.
Schivo NI Ltd, who took over the former Maydown Precision Engineering plant in July 2015, said they have been “unable to turnaround” the company.
The 83 workers in Londonderry now face a period of uncertainty as the aerospace operator said any decision regarding redundancies will not happen until administrators complete a full review of the company.
Philip Oakes, regional officer with Unite, said the temporary closure of the factory was officially announced to workers this morning.
“Last night the night shift were told to go home and report back at 8am this morning.
“There was a meeting at the factory this morning and the staff were addressed by the administrator who updated them on the situation and told them to report back at the factory until Wednesday, while, they seek a new buyer,” he said.
Mr Oakes said it was a worrying time for staff at the factory.
A spokesperson for the Waterford-based Schivo Group said: “Unfortunately, despite the best efforts of management and considerable investment, we have been unable to turnaround Schivo NI Ltd.
“Duff & Phelps has been appointed as Joint Administrators and are conducting a thorough review of the company and its operations before advising us on the best course of action.
“All other companies in Schivo Group are unaffected and continue to operate as normal.
“We are supporting our colleagues at Schivo NI during this process and thank them for their dedication to the turnaround we undertook.
“We hope to be able to provide clarity on the future of the site as soon as possible.”
With regard to the workforce, the spokesperson added:
“The Administrators are conducting a full review of the company and its operations before making any decisions regarding redundancies.”
Sinn Féin MLA for Foyle Raymond McCartney said: “Reports that administrators have been called in at Derry-based firm, Schivo, is very concerning, particularly for the employees and their families.
“This firm employs more than 80 people in the city and no doubt this announcement will have created fear and uncertainty.
“I will be in contact with the firm to discuss the current situation and to ensure the rights and entitlements of workers are respected.
“It is important that management at the company engage fully with workers and trade unions in the time ahead and that staff are kept up to date of all developments.”