The depth of the economic crisis that has impacted on agriculture over recent months is reflected in Redrock Engineering's decision to call in administrators Cavanagh Kelly on Thursday.
Farming Life has been informed that every attempt will be made to sell off the business as a going concern over the coming weeks.
Meanwhile, machinery dealers across Northern Ireland are confirming that it is business as usual, where both Redrock m
achinery lines and parts are concerned.
A representative of the administrators told Farming Life that there remains significant financial worth in the Redrock business.
"We will trawl as widely as possible in order to secure the best possible outcome for Redrock Engineering," he added.
"However, we are not in a position to confirm how long this process may take."
Redrock Engineering has been in business for more than 33 years and employs 80 people. It is a major exporter of high quality agricultural and construction machinery into the Irish, UK and European markets. The company's machinery range is widely used on farms across Northern Ireland.
Redrock has confirmed that it has consistently made significant investment in research and development of new products to enable it to remain at the forefront of the agricultural and construction industries.
"This is a sudden and distressing situation for the directors, management and staff," commented Redrock's managing director Samuel Hughes.
"Up until this point we have been a successful company however we have found it increasingly difficult to manage the downturn in spending in both the agricultural and construction markets.
"Over the past 18 months, there has been a very substantial reduction in demand for construction products and the difficult trading conditions in the agricultural industry have resulted in a reduced demand for products, particularly over the past six months.
"We have been faced with major cash flow challenges that have become impossible to sustain. Given the significant financial difficulties we had no choice but to appoint administrators."
He added: "We have a highly skilled staff who deserve recognition of their talents, hard work, loyalty and dedication to this company. I want to pay tribute to them and express my deepest regret that they are facing this uncertainty."
DUP MLA for Newry and Armagh William Irwin said the news that Redrock Engineering has gone into administration is a blow for the rural economy and demonstrates the challenges facing many businesses with links to the agricultural industry.
He added: "Redrock Engineering is a company with a prestigious reputation right across Northern Ireland and has been a cornerstone of agricultural engineering in the Province through its thirty three years of business in Co Armagh. There are a huge number of farms across Northern Ireland and further afield who have purchased Redrock machinery and know the quality of this produce and the quality of its manufacturing.
"Obviously the downturn in the construction industry has had an effect on a business such as Redrock but with a product range covering so many areas of agricultural machinery it is clear that tougher times in the agricultural industry have also had an effect.
"I have been speaking to the management of Redrock regularly over recent times and I will also be working closely with the Minister for Enterprise Trade and Investment to see what the possibilities are for this company."
He added: "In such a rural area the 80 jobs provided by the company are a significant source of employment, particularly as many of the employees have linkages to the agricultural industry."
