A METAL fabrication company went into administration after international firm Caterpillar withdrew its orders, it emerged last night.

As reported in yesterday’s The Northern Echo, half the remaining staff at Evenwood Industries were laid off immediately after administrators were called in.

The 111-year-old company, based in Evenwood, near West Auckland, County Durham, had until recently employed more than 100 people, but made 40 staff redundant at the end of last year and more than 30 went on Monday, following administration.

There was still hope last night that the company could be bought and the jobs of the remaining 37 workers saved.

Administrator John Twizell, of Leeds-based Geoffrey Martin and Co, said Evenwood had got into problems after Caterpillar halted its orders. He said: “The administration followed directly the decision by one of the company’s major customers, Caterpillar, to withdraw all orders, despite assurances from Evenwood’s shareholders that they would continue to support the business financially in the long term.

“This development has also now, unfortunately, led to a further round of redundancies.”

Mr Twizell added: “It should also be emphasised that we are making every possible effort, and pursuing all available options, to find a suitable buyer, without delay, and ensure that that a wellknown company, with a proud heritage will have a viable, long-term future.”

Stephen Thompkins, of the GMB union, said the remaining staff would work on outstanding orders while the administrators sought a buyer.

He said: “Any jobs saved would be a welcome boost.”

Caterpillar, best known for its construction vehicles and machinery, has itself been hit by the downturn.

Earlier this year the US company announced plans to make 5,000 cuts worldwide following 15,000 that have already been made.

Earlier cuts included 60 permanent and 75 temporary workers in its building construction products division in Stockton, and more than 290 temporary workers at its dumper truck plant in Peterlee.

A Caterpillar spokesman was unable to comment about Evenwood last night.

Evenwood, founded in 1898, supplies parts for the construction industry and the downturn in that sector was already having an effect before Caterpillar pulled out.

The firm has been one of the largest suppliers of sheet metal and welded fabrications, laser cutting and general fabrication work in the UK.

Its difficulties come as the North East Chamber of Commerce (NECC) has called on Chancellor Alistair Darling to deliver a “Budget for jobs” today.

Spokesman Mike Parker said the NECC had already called for a corporation tax holiday for businesses and was keen to see the introduction of a short-time working compensation scheme, last used in the Eighties.