Steel manufacturer DTD Engineering has entered administration this week putting at risk the jobs of its 50 full-time employees.
DTD Engineering was established in 1980 and is based in Albury.
The business is a major supplier of stainless and carbon steel fabrications and provides onsite mechanical project work to clients in the pulp and paper products industry, wood mill plants, water treatment, food processing and associated industries.
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Chris Chamberlain and Steven Priest of Chamberlains SBR have been appointed as administrators, and Chamberlain told SmartCompany DTD Engineering had a turnover last year of over $6 million.
“As best we can tell the business is continuing to trade and we are having discussions with a number of parties in relation to options going forward,” he says.
“We are going through the normal protocols of a voluntary administration and creditors will be kept involved.”
Chamberlain says creditors are owed around $800,000 and the major creditors are steel suppliers along with “a considerable number” of local creditors from the Albury region.
“We are looking to try and keep the business afloat and the employees are receiving their wages this week,” he says.
Chamberlain says it is “far too early” to identify the problems at DTD Engineering which led to the collapse of the business.
The manufacturing industry, and in particular the steel sector, continue to face pressure with the collapse of Rebar Prefab, a Melbourne-based manufacturer of steel-based concrete reinforcing materials, in April and the collapse of Spillane Fabrications and Capital Steel Buildings earlier this year.
A meeting of creditors will be held next week on May 30 in Albury.