THE construction firm that helped deliver a section of A465 Heads of the Valleys Road between Brynmawr and Tredegar, has gone into compulsory liquidation, putting jobs at risk.

Carillion has said it has “no choice but to take steps to enter into compulsory liquidation with immediate effect” after talks failed to find another way to deal with the company’s debts.

The company, which employs 20,000 workers across Britain, said crunch talks over the weekend aimed at driving down debt and shoring up its balance sheet had failed to result in the “short term financial support” it needed to continue trading while a deal was reached.

A Welsh Government spokeswoman said: “Unlike the UK Government, the Welsh Government has only a very small number of Government contracts with Carillion.

"We do not expect Carillion’s move into liquidation to have a significant impact on our infrastructure or wider work.

“We will do all we can to support Carillion workers in Wales, including assisting them to find alternative employment or training where necessary through Welsh Government support programmes such as REACT.”

Russell George AM, the Welsh Conservative's shadow economy secretary said: “It is deeply regrettable that Carillion has not been able to find suitable financing options with its lenders but taxpayers cannot be expected to bail out a private sector company.

“Since profit warnings were first issued in July, the UK Conservative Government has been closely monitoring the situation and has been in constructive discussion with Carillion while it sought to refinance its business.

“Carillion also has significant involvement in Wales on a number of key projects and we need to hear what plans the cabinet secretary and Welsh Government will put in place on schemes such as the A40, A55 and the company’s role as a partner for Abellio in the potential rail franchise.

“This is very disappointing news but the primary responsibility for governments at both ends of the M4 must now been on ensuring essential public services continue to run safely and effectively.”

The company is understood to have public sector or public/private partnership contracts worth £1.7 billion, including providing school dinners, cleaning and catering at NHS hospitals.

As well as a section of the Heads of the Valleys Road, the firm is involved in construction work on rail projects and maintaining 50,000 army base homes for the Ministry of Defence.

Carillion's chairman Philip Green said: “This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.

“Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the board is very grateful for the huge efforts made by Keith Cochrane, our executive team and many others who have worked tirelessly over this period.

“In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision."

“We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers.”