An Anglesey recycling firm that was hailed by Boris Johnson just two months ago has gone into administration. Orthios took over the Anglesey Aluminium site in Holyhead in 2016 after smelting came to an end in 2009.
It had originally planned to build a 299 mw plant and hydroponic and aquaculture centres but funding for this later fell through. But the firm has built a materials recycling facility (MRF) and was in the process of developing a Plastics-to-Oil (P-2-O) unit.
The company was supported by Ynys Mon MP Virginia Crosbie to secure a £1.2m UK Government-backed Coronavirus Business Interruption Loan Scheme last year. In January Prime Minister Boris Johnson also praised the company when he toured the site - which employs around 100 staff - on a visit to North Wales promoting jobs and economic growth.
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But Business Live reported last week that firms had been in touch about outstanding invoices. The company said a management buy-out of Orthios was underway following the “agreement of terms between the company’s previous investors and a new funder that will allow for further growth, new initiatives and jobs creation”.
CEO Sean McCormick had said: “We are contacting all suppliers to explain what is happening and arrange a schedule for settling any outstanding invoices.”
However today the company said Begbies Traynor had been appointed as administrator by the main investor.
A spokesperson said: "We are shocked and dismayed by this week’s turn of events and the impact it’s had on our entire staff. We agreed terms with our main investor last week to do a management buy-out that included releasing further funds to cover staff pay. Unfortunately this has not come to fruition. We are still negotiating, however, and are very hopeful of a positive outcome.”
Ynys Mon MS Rhun ap Iorwerth said: "It's very worrying to hear of these financial difficulties at Orthios. This is a key site for creating economic activity on the island. I will contact the company to seek assurance that everything possible is being done to resolve the situation and to protect jobs, and I will ask Welsh Government to ensure assistance is made available for employees and the company."
Ynys Mon MP Virginia Crosbie said: "This is incredibly disappointing news and my thoughts are with the 120 people and their families who have lost their jobs.
"My understanding is there is some hope for a management buyout and all creditors will be paid but we will have to see how that develops.
"The company was exciting and innovative – it has invested heavily in its skilled workforce - but ultimately it appears it has been let down by its funders.
"I have spoken with the management team who have assured me that they are doing everything they can to complete the buyout, pay creditors and secure some form of future for the business.
"If any former employee wants to get in touch with me, then I will do everything I can to support them at what is a difficult time."
Begbies Traynor has been asked to comment.
