A Welsh construction company responsible for building the roof of the London 2012 aquatic centre has confirmed 400 possible redundancies after Grant Thornton was appointed administrator.
Newport-based Rowecord Engineering Ltd was founded in 1970 and had worked on a swathe of high profile projects including London Paddington station and the Cardiff City stadium.
In calling in administrators on Friday night, Rowecord’s managing director Andrew Hoppe said the company had “exhausted every option to sustain the business for the future.”
Administrator Alistair Wardell said: “This is a devastating blow, not just for the Rowecord workforce which will be affected, but for the Welsh economy as a whole.
“It is also likely to have an impact on a number of other companies along the M4 corridor that up until now have been suppliers to Rowecord.
“Among our roles as administrators will be to explore which, if any, parts of the business can be salvaged and whether any jobs can be saved.
“It is likely that around 50-70 Rowecord employees will be retained post-administration to complete any current work in progress.”
Rowecord had employed more than 500 staff at sites in Newport, Baglan and the Tata Steelworks in Port Talbot.
It is currently working on major projects at the Dover Docks and the British Museum and recently built the blast furnace for Tata at Port Talbot, where it has 120 people on site providing general maintenance.
A Welsh Government spokesperson said: “This is very disappointing news especially for the company, its employees and their families. The Welsh Government has worked closely with Rowecord to support the business and offered assistance to the maximum level allowable within state aid rules.
“However, the offer was not taken up as Rowecord decided that it is in the best interests of its employees and partners to file for administration when a buyer for the business may be identified. In the meantime we will ensure that as much support as possible is made available to the employees including the Welsh Government ReAct programme.”