Steel Hikes Push Global Engineered Fasteners Into Receivership
Steel Hikes Push Global Engineered Fasteners Into Receivership
Jason Sandefur
Unable to pass along higher steel costs to its customers, Global Engineered Fasteners was placed into voluntary administration while a restructuring is worked out, the Australian reported. GEF said it had been hit by a 70% rise in steel prices, coupled with a 20% drop in local car production and a 10% rise in the Australian dollar.
Victoria, Australia-based GEF employs about 200 staff through two business units: Ajax Engineered Fasteners and Global Automotive Logistics.
GEF is owned by GEF Holdings Pty Ltd, whose major shareholder is a fund managed by Allen Capital Private Equity.
GEF Holdings chairman Peter Allen claimed the company’s directors had attempted to return Ajax to profitability and to raise additional capital to “allow Ajax to continue to trade.”
“The shareholders still believe in the future viability of the business and are prepared to fund a restructuring through the administration process,” Allen stated.
GEF’s turnaround plan includes “a large part of our manufacturing being transitioned offshore by late 2007,” Allen explained.
The announcement comes amid negotiations between the Australian government and China over a possible free-trade agreement. Web: ajaxfast.com.au or allencapital.com.au �2006 FastenerNews.com
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