A NEWPORT company will make the vast majority of its workforce redundant today when they go into administration.

Coilcolor, in the Whitehead Estate, in Docks Way, which will be making 50 people redundant, have claimed the company has failed due to “mismanagement” by the Welsh Government.

A Welsh Government spokeswoman said that they had "always acted promptly in handling this case".

Dean Proctor, managing director of the company, which manufactures steel panels for companies such as Ikea and EasyJet, said: “I have just sent everybody home this morning to come back tomorrow to be made redundant. We are going into administration tomorrow.

“I have spoken to the administrators to get all the paperwork signed off and they have a few interested buyers."

He said that 50 people will lose their jobs, but that three key staff members for maintenance and health and safety will stay.

“The staff are pretty devastated. We have been here for a long time and we all know each other very well,” he said. “We have the slim hope that within the next four to six week they can find a new buyer and hopefully get people back - but that is now a process entirely out of our control.

“The company has failed due to the mismanagement of the Welsh Government site – which is disappointing.

“Everybody here feels that their own government has caused for them to be unemployed.”

As previously reported in the Argus, the managing director said their factory flooded twice last November after the Welsh Government cleared the land around their factory.

He said the two floods damaged the finished goods section and meant that their machinery was out of action up until the end of January.

Mr Proctor said, ever since, they have been having problems with their insurance and that they have not been paid the claim yet.

They understand the insurance claim would be for more than £3.7m, for work lost, machinery repairs and stock damage.

About seven weeks ago, he claims they told the Welsh Government they needed £600,000 to keep them going and that, in a meeting held without prejudice, which means those discussions can’t be used for legal action, they said they would look into it and make a payment.

A Welsh Government spokeswoman said: "The Welsh Government has always acted promptly in handling this case.

"We have remained in close contact with the company since the incident and have facilitated financial support through Finance Wales to enable them to continue to trade whilst they disputed a claim with their insurers, but have never received any formal claim.

“Officials will continue to stay in contact with the Company and stand ready to offer every assistance within our powers to support the company and employees.

"We have also offered support from Careers Wales and Job Centre Plus for everyone affected.”