AIC Steel in Newport has gone into administration with 101 employees having been made redundant. 

The remaining 29 employees will "continue to assist the business".

The company, based on Usk Way, had 120 employees and is a steel fabricator and erector business. 

Administrators at business rescue and recovery specialists Begbies Traynor have been appointed to oversee the situation. 

A statement on behalf of the company said: "Begbies Traynor are currently investigating the viability of continuing trading, but it is likely that there will be significant redundancies."

Workers were told the news at a meeting today, before those starting the afternoon shift clocked in. 

Ryan Broadrick, of Cwmbran, who came in to start his shift at 2pm, claims employees were told their redundancies would be 'effective immediately'.

The 34-year-old said: "We were all complete shocked. Some people said they saw it coming but generally everyone was a bit shocked. Especially as new people were taken on yesterday."

The welder fabricator, who has been with the company just under two years, said they have been 'flat out' with production, and had previously been told there was plenty of work until April.

"I thought life was on track," he added. "We've just had a four-week-old baby. I have to get online and find something else now.

"We should be used to it by now in this industry."

Mr Broadrick also said he doesn't hold out much hope for the company finding another buyer. He said employees were told anybody who has been there over two years will receive a redundancy package.  

AIC Steel is the British arm of a family-owned steel company based in the Middle East. It was established to acquire the business and assets of Rowecord Engineering Limited which was placed into administration in May 2013. 

Since opening in Newport, in March 2014, the business has been awarded a number of industry accreditations and has also undertaken a number of high profile contracts, including one for Bristol City Football Club for work at its Ashton Gate stadium.

Steffan Lewis, Plaid Cymru AM for South East Wales, has called on the Welsh Government to intervene to stop job losses. 

"With 120 employees now facing redundancy, it is vital that we do everything possible to protect jobs," he said.

“I have written to the Welsh Government to ask them to investigate every possible avenue of action to keep the business running. Plaid Cymru are committed to securing a bright future for the steel industry across Wales. We need immediate action to save AIC Steel jobs in Newport.”