A FIRM making textile machinery has gone into administration with the loss of 16 jobs.
Pneumatic Conveyors (Huddersfield) Ltd, based at Leeds Road, Huddersfield, blamed a combination of factors for the decline of the business - including depressed profit margins, delays in expected major contracts and tough competition.
Meltham man Peter Sargent, of Halifax-based insolvency practitioner Sargent and Co, has been appointed administrator for the company.
Mr Sargent said 16 of the 26-strong workforce had been made redundant.
A buyer was being sought for the company, which was continuing to operate to finish off existing orders.
Director Paul Lucas said the textile machinery industry had been hit by a decline in orders in recent years which had left "too many companies chasing too little business".
Last year, the market was swamped by a sudden glut of used textile machinery from mills that had gone out of business and Pneumatic Conveyors had lost potential sales as a result.
Mr Lucas said the company had also been hit by delays in major contracts it had worked hard to win at a recent textile machinery exhibition.
Mr Sargent said: "The market is becoming more competitive and profit margins have been shaved.
"The company was hoping for some decent orders in the new year, but they will not be forthcoming."
Pneumatic Conveyors was established in 1950 at premises in Willow Lane. The company moved to its purpose-built factory at Leeds Road in 1960.
Pneumatic Conveyors developed a worldwide reputation for textile equipment used in fibre blending and preparation and won many major contracts to sell machinery to customers in the UK and overseas, including New Zealand, Russia, Iceland, Iran and the USA.