Coventry & Warwickshire

Car parts maker Covpress Limited in administration

Covpress Ltd
Image caption Covpress Limited supplies the automotive industry

A car parts manufacturer, which employs about 800 people, has been put into administration.

Coventry-based Covpress Limited had experienced "significant and urgent funding issues," administrators Grant Thornton said.

No redundancies have been announced and it would look to "pursue a sale or rescue of the company," it added.

Covpress Limited makes body panels for car makers including Jaguar Land Rover and Renault.

The company said on its website that in 30 months since a £30m British-Chinese consortium takeover in July 2013 "a further £25m has been invested in the Canley plant in both machinery and jobs".

The Unite union said the administration was "a worrying development for the 800 employees" and more generally for the West Midlands economy.

But regional officer Adrian Ross added "there is optimism that a buyer will be found".

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Analysis: BBC Midlands Today business correspondent Peter Plisner

This is an unusual administration.

It is very different from many collapses we have seen in the past where companies have lacked orders and struggled to win new work.

Covpress has been expanding rapidly over the last three years and is understood to have full order books.

Whatever has gone wrong, I would expect administrators would be seeing a lot of interest from potential buyers and that should help save the bulk of the jobs at Covpress.

Grant Thornton said talks with customers and suppliers would be "critical to any outcome".

Eddie Williams, a joint-administrator, said: "We expect significant interest in this growing business and with that support, we will look to pursue a sale or rescue of the company."

In July last year Covpress spent another £30m buying nearby Honda supplier UYT, which was renamed Covpress Assembly, a move that safeguarded 400 jobs, according to the company's website.

Covpress Assembly Limited is not subject to the administration.

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