Dozens of jobs lost as Doncaster engineering firm goes bust after just a year

Green technology firm Lontra was launched in a blaze of publicity last year with its £17 million factory in Finningley proposed to create 300 jobs and which was supported with £7 million from South Yorkshire Mayoral Combined Authority.

But the struggling firm – part of the Gateway East project near to the shutdown Doncaster Sheffield Airport - has failed to attract further investment to help its plans to expand and the business is up for sale.

Specialist business advisory firm FRP was appointed as joint administrators on November 29, a statement said.

A spokesman said: “Despite extensive efforts, the company was unable to secure further funding to support the continued development of its technology and products.

"However, the business encountered significant challenges in introducing its green tech product to the market. This came amidst constraints with both investment funding and industrial capital expenditure in the sector.

“Upon appointment, 45 employees were made redundant, with seven retained for a limited period to assist the administrators. The business has ceased trading and the administrators are searching for a buyer. We are supporting the individuals affected.”

Phil Pierce of FRP said: “The company had an exciting proposition which had been in development for over 10 years and received considerable investment. However, the inability to source sufficient further funding has necessitated the appointment of administrators.

“We are now focused on exploring options to sell the company’s assets, in particular the intellectual property, and encourage any interested parties to come forward.”

Interested parties should contact Greg Carr at FRP: [email protected]

At its launch, SYMCA partnered with Lontra to provide a grant and loan package totalling over £7m through the South Yorkshire Renewal Fund, with approximately £10m of private sector match funding by Lontra.

At the time, Dan Jarvis MP said: “This is an exciting example of a UK innovator investing in South Yorkshire – further enhancing our reputation as a hub for advanced manufacturing. The new smart factory will play a significant role in developing our economic plan for a stronger, greener and fairer region. It will create hundreds of great new jobs, and boost our productivity and global exports.”