Doncaster’s Bawtry Carbon Factory Closes, Leading to Redundancies
Bawtry Carbon, a longstanding manufacturing firm based in Austerfield, Doncaster, has gone into administration, resulting in the majority of its 103 employees being made redundant. This marks the second time in five years that the company, which began operations in 1972, has faced such financial difficulties.
The company, known for manufacturing and supplying carbon cathode blocks, cited a combination of tough economic conditions, the ongoing war in Ukraine, and the aftermath of the Covid-19 pandemic as the primary reasons for its closure. These factors have significantly impacted its financial stability, leading to "increasing financial difficulties.
"Administrators from Grant Thornton have been appointed to manage the company's affairs. They highlighted the company's struggle against "unfavourable economic conditions," including the pandemic, geopolitical tensions, and inflation in raw material and energy costs. Despite efforts to review operations and seek potential buyers for the business, the financial strain proved insurmountable, forcing the decision to enter administration.
Bawtry Carbon has played a critical role in the global primary aluminium industry, supplying cathodes and ramming pastes to aluminium smelting companies. Its facility in Austerfield was among a limited number of suppliers within the EU catering to this sector.Joint administrator Chris Petts expressed regret over the necessity to wind down operations and the subsequent layoffs. The immediate focus is on assisting affected employees through the Redundancy Payments Service.
Enact, a private equity fund and the majority shareholder since a management buyout in 2019, has expressed disappointment over the unsuccessful turnaround of Bawtry Carbon. Despite significant financial support, including a capital injection in 2023, external pressures from the pandemic and geopolitical conflicts, coupled with the credit downgrade of a major customer, have made it impossible for the company to continue operating.
