A bid to save two troubled British automotive injection molders through their merger has ended with the combined business collapsing in administration, eliminating 120 jobs.
Six months ago, Plastic Technologies Ltd. of Birmingham and Excel Technical Mouldings Ltd. of Paignton, combined to form XL Plastic Technologies Ltd. on PTL's site in Smethwick.
At the time, XL managers planned to attract business in new markets such as construction, materials handling and large-part molding. Directors planned to buy other small injection molders.
The firm had 41 presses and annual sales of £10 million ($18 million).
But in mid-January, the firm was forced into administration - the British equivalent of bankruptcy protection. Receivers from accountancy firm Menzies Corporate Restructuring of London took over, initially with hopes of finding a buyer.
Interest from potential buyers waned, however, and the company stopped production in late February. The plant and machinery were to be auctioned this month.
The venture was undercapitalized from the start and just ran out of cash, said joint administrator Andrew Duncan. XL never attracted sufficient business to support its 148,000-square-foot plant.
One local custom molder to benefit from XL's demise is automotive parts joint venture Lander Carlisle Ltd., with two plants nearby in Birmingham. Lander Carlisle makes under-the-hood parts, interior and exterior trim and insert molded components and operates 49 injection presses.