Steel fabrication specialists SBV Fabrication and Site Services Ltd has been bought out of administration in a deal which will shed 52 jobs.
Administrators from KPMG said the firm had suffered a “significant” one-off loss in relation to a major contract.
Resulting cashflow pressures had led to a winding up petition against the company, at which point the directors placed the firm into administration.
Part of the firm was subsequently sold to a new company established by former management.
The deal saves 163 jobs but 52 have been lost from parts of the business not acquired by the new outfit, SBV Engineering.
Howard Smith and Jonny Marston of KPMG’s Restructuring practice were appointed joint administrators over SBV Fabrication and Site Services Ltd on Monday.
The business, which supplies steel fabrication and associated services to the steel industry as well as energy sectors including nuclear and oil and gas, had operations in Middlesbrough, Hartlepool and Teesport Commerce Park.
KPMG confirmed there was an immediate sale of some interests in specific contracts and related assets to the new company, which will soley operate from the Teesport Commerce Park site.
Howard Smith, associate partner and joint administrator, said: “Whilst it is always pleasing to conclude a going concern sale, preserving both a business and employment for the majority of staff, redundancies at any time are difficult and that is particularly the case as Christmas approaches.
“Our team were on site at appointment to support those made redundant and will continue to do so. The timing of this transaction was critical to our ability to save the majority of the business.”
SBV was established in 1988 and has sites in Middlesbrough and Hartlepool.
The firm - which expanded into a new site at the Teesside Offshore Base in 2013 - works in a range of sectors, including energy, nuclear, oil and gas, marine and heavy industrial.