Caithness Stone Industries Ltd, a leading quarrier and processor of Caithness Stone, has gone into administration.
The Spittal-based company operated a number of quarry sites, but suffered from rising costs and increased competition. Iain Fraser and Tom MacLennan of RSM Tenon were appointed as joint administrators.
Ian Fraser said the company had a “high profile as one of the leading suppliers and processors of Caithness stone.
“The company invested heavily in new technology in order to improve the efficiency of extraction and processing, and successfully diversified into new residential markets.
The company had supplied Caithness Stone to contemporary building projects, including the Scottish Parliament, and a number of hotels, visitor centres and public buildings in the UK and abroad.
It diversified into supplying the residential market by launching a range of new stone-based products for kitchens, bathrooms, gardens and furniture.
However, it generated just £3m in turnover during 2012, with a combination of increased competition, heavy investment expenditure and rising operating costs resulted in “severe and unsustainable cash flow problems.”
Fraser said: “We will now undertake a thorough review of Caithness Stone Industries Ltd, the results of which will determine the next steps for the administration.”