£9m turnover plastics manufacturer falls into administration

Administrators have been called in to a Hull-based manufacturer of storage tanks and industrial piping after an internal enquiry found that the business had accumulated substantial losses since accounts were last filed in June 2016.

Established in 1973, £9m turnover Plasticon UK is based at Sutton Fields Industrial Estate, where it employs 79 staff.

The business, which is part of the global Plasticon Composites Group, specialises in custom-made, corrosion-resistant storage vessels and processing equipment for a range of industries that handle or process chemicals and corrosive gases.

According to its last filing at Companies House, relating to the year to the end of June 2016, the company made a pre-tax loss of £342,086 compared to a pre-tax profit of £356,050 the year before.

The company’s latest accounts, for the year to June 2017, were due to be filed at Companies House on March 31.

Andrew Mackenzie, Julian Pitts and Gary Lee of Begbies Traynor were appointed as joint administrators on March 29.

Mackenzie said: “The business is highly specialised and has a strong reputation for innovation in the composites field. We are confident that a buyer can be found for Plasticon UK and have already had several enquiries.”

He added: “The administrators are currently investigating the extent and the cause of the financial losses suffered by the business.”

As well as a significant volume of work in progress, Plasticon UK also owns a state-of-the-art manufacturing facility, along with stock, an order book and intellectual property rights to a wide range of industrial products.