More staff are being let go at the Merseyside company once heralded as a shining light and loaned millions by the city region mayor’s combined authority
Workers have been “begging to stay” at a Merseyside company where scores of staff have been laid off and made redundant after the loss of a major contract. The ECHO has been reporting on the grim situation involving supercar parts manufacturer Surface Transforms, which is based on Knowsley Industrial Estate.
The company describes itself as an expert in the development and production of carbon-ceramic brake discs for supercars. Last month, the company was plunged into an existential crisis after automotive giant General Motors (GM) decided to end its major contract with the Merseyside firm, which was supposed to run until 2030 and which accounts for 80% of its work.
Prior to this blow, Surface Transforms had been heralded as a “world class manufacturer” by Liverpool City Region mayor Steve Rotheram, whose combined authority had provided it with a loan of more than £13m to help it grow and create jobs.
But since the loss of the contract, at least 70 workers have been laid off, the ECHO understands.
Surface Transforms first filed a Notice of Intention to Appoint Administrators on March 12, days after it lost the contract. That notice protected it from creditors for 10 working days while directors battled to save it.
The company filed another notice on March 25. And last week, on April 9, it filed another notice to give it another 10 working days of protection that will last until the middle of next week. It said: “The third NOI provides time for the company and its advisers to continue ongoing discussions with the aim of maximising value for all stakeholders.”
Workers told the ECHO that redundancy consultations have finished this week, with numerous staff told they were now redundant. It is believed that two out of three production shifts have now gone, as well as a majority of maintenance and quality control staff, with the Knowsley factory said to now be “very quiet.”
One staff member, who has been made redundant, described some of the distressing scenes in recent weeks, adding: “You had people begging to stay.. It was horrible to see – people who expected to stay because they’d been there years.
“I’ve never ever known anything like it. I’m glad I got made redundant.”
Workers have also made complaints about the way redundancy payments are being managed, claiming that they are not being paid in one go and instead having it paid across three months.
The ECHO has put these latest claims from workers to Surface Transforms.
In a previous statement, a spokesperson said: “When General Motors informed the company that it would be re-sourcing its supply of brake discs, it created a material impact on the company’s ability to trade.
“The board commenced a strategic review and initiated a cost rationalisation exercise. That included layoffs and meaningful consultation with employees about potential redundancies, following a clearly defined legal process. All options available to the company continue to be explored to provide the best outcome for those impacted in these very difficult circumstances.”
The Surface Transforms crisis started on March 4 when the company told the stock market that General Motors was ending its brake disc contract four years early. GM made up 84% of Surface Transforms’ sales, and bought 85% of the discs it made – and had also given ST “operational support and financial assistance including advance payments of £14.4m”.
The company said the move would have “a material impact on the company’s ability to trade” and so directors had hired restructuring advisers. The company’s share price plunged more than 90% as a result.
On March 12, the business announced it was filing a Notice of Intention to Appoint Administrators (NOI) and had hired Alvarez & Marsal as restructuring advisers. Its shares were also suspended from trading on London’s AIM market.
Filing an NOI means a company is protected from action by creditors while directors and advisers plan the future of the business.
Surface Transforms also warned that job losses and layoffs might be on the way, and said it had “initiated a cost rationalisation exercise as a consequence of the reduced production volumes” following the contract loss.
In 2023 Surface Transforms was offered a £13.2m loan by Liverpool City Region Combined Authority, through Mayor Steve Rotheram’s Urban Development Fund, to invest in new manufacturing facilities. The mayor added at the time: “This investment we’re making will be transformational in helping them to scale-up their operations – and create quality, highly-skilled jobs and training opportunities for local people.”
Surface Transforms’ accounts for 2024 showed it had that year borrowed £5.1m of the potential £13.2m available. But it said that “drawdowns have continued into 2025, and the company expects the full £13.2m facility to be fully utilised by the end of the year (2025).”
A statement from the Combined Authority, provided last month, said: “We remain in dialogue with the company to fully understand the current situation. It would not be appropriate to make any further comment at this time.”
