Shaftec Automotive Components ceases trading

Shaftec Automotive Components has entered administration and ceased trading, resulting in the loss of around 90 jobs.

The Birmingham-based manufacturer of drive, steering and braking components, had been facing sustained financial pressure linked to increased costs and rising competition from lower-cost imports.

Despite an extensive marketing process, Shaftec was unable to secure a new buyer and has now closed. The company’s official website has also been deactivated.

Most of Shaftec’s employees have been made redundant, with a small number temporarily retained to assist with the winding-down of operations.

Affected staff are being provided with support, including assistance with applications to the Redundancy Payments Service.

The Independent Automotive Aftermarket Federation (IAAF) and its recruitment partner Glen Callum Associates, have also pledged their support to Shaftec employees in their search for new opportunities.

Anthony Collier and Richard Goodall of FRP Advisory were appointed as joint administrators to the company.

“Shaftec was a well-respected name in the UK automotive aftermarket with a strong heritage spanning more than four decades,” Collier said.

“Regrettably, it has come up against strong economic headwinds felt across the industry and, despite significant efforts to secure a sale, it was not possible to find a buyer for the business.

“Our immediate focus is on supporting affected employees and ensuring an orderly wind-down of the company’s affairs.” he added.