Workers today returned to a Mid Wales factory which closed with the loss of more than 70 jobs last month.

Up to 10 workers have now started work at the former Floform site in Henfaes Lane, Welshpool.

Seventy-four workers were made redundant when the company ceased trading last month after administrators admitted defeat in their bid to save them, but workers returned to the site this morning for a new company.

Zolfo Cooper, administrators for Floform, say it is in “serious discussions” with a firm about a takeover, but refused to name the interested party.

But one of the 10 workers said he has begun working at the site for a Hertfordshire-based company.

The worker, who declined to be named, said: “It is for a company called Dawson Shanahan from Potter’s Bar, Hertfordshire who do similar work to Floform.

“I believe they want to employ more people soon.”

Dawson Shanahan is a precision manufacturer of cold forming components, precision machinery and finish machinery on copper and aluminium products. The company was unavailable for comment today.

Glyn Davies, Conservative Parliamentary candidate for Montgomeryshire, said: “I have been told by reliable sources that there are 10 workers at the Floform site, but I cannot get official confirmation on who the new company is.”

Floform, which supplied vehicle manufacturers with parts, ceased trading in February. Meanwhile, questions about the state of manufacturing in Mid Wales have been raised in Parliament following the latest job cuts in Newtown.

MP for Montgomeryshire, Lembit Opik questioned Welsh Secretary Paul Murphy during the Welsh Questions session in the House of Commons yesterday.

He said: “Only yesterday I received notice the Newtown factory branch of Trelleborg Sealing Solutions will make about 56 job cuts, following similar examples at Stadco and Floform.

“What plans does Mr Murphy have to make sure the manufacturing skills gap does not widen in Montgomeryshire?”

Mr Opik said Mr Murphy emphasised the need to spread news of available Welsh Assembly and UK Government help to all businesses in Wales.

By Andrew Morris