UP TO 150 jobs could be lost in the town after a leading Malvern engineering firm entered administration.
Joint administrators FRP Advisory have confirmed Dytecna Limited will continue to trade while the company is managed in the interests of staff, creditors and customers.
The business, based next to Malvern Hills Science Park, focuses on the defence sector and provides independent engineering solutions, technology systems and support services.
But despite a profitable trading history, Dytecna has faced a recent deterioration in business which is said to have put ‘unsustainable pressure’ on the current financial structure of the firm.
Efforts to bring in external investment were also unsuccessful and left the company with no option but to seek the protection of administration.
Phillip Watkins, joint administrator at FRP Advisory, said: “We are highly focused on working with Dytecna’s staff, customers and suppliers and engaging with interested parties, while seeking a suitable buyer.
“Dytecna is a business with its roots tracing back to 1947 and has enjoyed a good working relationship with a number of loyal clients over the years.
“In line with trading conditions affecting similar firms in its sector, the business has had to manage unsustainable pressure on its cash flow.
“The business maintains a strong order book and will aim to continue to deliver the high level of service for which the business is known. We would invite interested parties to make early contact.”
Dytecna’s projects have included engineering solutions for wastewater treatment for battlefield and refugee camp situations.
Malvern MP Harriett Baldwin said her thoughts were with the ‘highly skilled’ employees of the company.
“I have been briefed by the administrators and I am told there is already some interest from potential purchasers,” she added.
“We must keep our fingers crossed that a deal can be found.
“Should a buyer not come forward I will be contacting the Job Centre Plus team to see what measures we can put in place to help find new roles quickly for this highly skilled workforce against a backdrop where the local numbers in employment are at an all-time high and vacancies are at record levels.”
Dytecna offered no further comment on the appointment of FRP as administrators when contacted by The Observer.
