AlphaSteel job cuts

A steel company employing more than 400 people has gone into administrative receivership.

Trade union Community said the news about Alphasteel in Newport was "terrible" and "couldn't have come at a worse time," days before Christmas.

Local politicians called the news "devastating."

But the administrators said there had been interest in buying the business and they hoped to return to production in the New Year. undefined undefined

The company was founded in 1974 and in 2003 was taken over by Swiss-based Satico Ltd, which is linked to an Iranian company.

Business rescue specialists Begbies Traynor took control of the firm on Friday morning and sent staff home.

They are seeking to secure a sale to allow the business to return to full production.

A spokeswoman said 30 staff were remaining until a buyer was found.

"The ultimate effect on jobs will be decided by the speed at which a purchaser can be found."

Joint administrator Simon Thomas added: "The Newport site delivers a first class production facility, and interest has already been shown by international steel producers. "A sale of the business in the New Year would allow Alphasteel to return to full production."

Michael Leahy, head of the Community union, said the company should be profitable and it should be able to find a buyer.

He said the union had "desperately tried to help the company out of the situation it has found itself in".

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