A MOTORCYCLE chassis manufacturer which was bought by the company behind the beleaguered Circuit of Wales project in Ebbw Vale for more than £400,000 has gone bust, it has been revealed.

In 2012 the Heads of the Valleys Development Company bought Buckinghamshire-based FTR Moto. But now the firm has gone into administration, with its Companies House record showing insolvency proceedings began last month.

And figures seen by the Argus also appear to show Heads of the Valleys lost £1.2 million by staging two races at the Silverstone racetrack. However, the company deny the losses are to the amount claimed.

Monmouth MP David Davies called for answers around why Heads of the Valleys bought the company.

“Since they (FTR Moto) were purchased by Heads of the Valleys they’ve continued to make a loss,” he said.

A Heads of the Valleys spokesman said the company bought FTR to allow it to have a British rider representing a British team in a British round of the MotoGP championship once the circuit was complete.

“The company ceased operating from its Buckinghamshire base some time ago in anticipation of a move to Wales once the circuit construction was underway,” he said.

“The continued delays to the project have resulted in FTR’s management seeking temporary protection from its creditors whilst this is resolved but FTR Moto is still very much an attractive brand with a good position and business case which will be re-launched once financial close is reached on the Circuit of Wales.”

On the £1.2 million loss the spokesman said, as the track had not yet been built, the organisation had no choice but to hold the races at Silverstone, calling the situation “unfortunate and frustrating”.

“The Circuit of Wales does not control all the operational and revenue generating areas at Silverstone,” he said.

“As a result, the race operated at an operational loss in 2015 and 2016, although not to the losses identified.

“This was due to additional operational costs associated with Silverstone.”

He added the Welsh taxpayer was not liable for the losses.

The project, which is expected to creat 6,000 jobs, has twice been blocked by the Welsh Government. And earlier this month it was revealed the Wales Audit Office has launched an investigation into how the Welsh Government cash was used.