Established in 1973, specialist engineering business, Cronite Scomark, built up a strong technical reputation serving the petrochemical industry. Comprising a pipe manufacturing plant in Sheffield and a welding and fabrication facility near Derby, the company manufactured and assembled complex, high integrity pipe systems.
More recently, Cronite Scomark’s financial performance had been poor and its parent company was seeking to divest the loss-making business. However, efforts to achieve a trade sale had been unsuccessful and concerned clients had begun to suspend orders. The situation was exacerbated by production constraints forcing the plant’s output below break-even.