A COMPANY in Monmouth could receive £75,000 in funding amidst concerns over its future.

Tri-wall Europe, based in Wonastow Road, has applied to Monmouthshire County Council’s Cabinet (MCC) for hardship relief funding after suffering significant losses in recent years.

The company was bought in January 2013 by Tri-Wall Ltd based in Hong Kong as part of a push to establish Tri-Wall throughout Europe and the Middle East. Although UK revenues increased in that year, there was an overall loss of £826,000. There was a further decline in sales in 2014 with a loss of more than £900,000, according to a report being submitted to MCC’s Cabinet today (29th July).

The role of the hardship relief fund is to reduce or remit business rates of a struggling company. Local authorities may do this if the ratepayer, in this case Tri-Wall, would suffer hardship without a reduction.

The business rate for the company in 2014/ 15 was more than £202,200 which was paid in full by the company, but a reimbursement of £75,000 has been requested.

The business, which produces corrugated packing systems, employs more than 130 people with 70 per cent of employees living in Monmouthshire. 16 people have already been identified for redundancy at the company.

The report, co-written by Peter Davies, head of commercial and people development at MCC and Joy Robson, head of finance, says: “The authority has worked extensively with the company’s senior management and directors over recent months and understands that the grant of hardship relief will play a very important part in assisting the company to enable and implement its strategy and transition into a new business model, and one that will secure the company’s longevity into the future.

“With the council’s help they hope to be able to turn the business around and re-establish themselves as prolific players in the European heavy duty packaging market.

“The authority and Welsh Government are also working with the company to identify means by which they can assist the company with overcoming issues with the existing site layout to ensure that there is scope for future expansion.

“The granting of hardship relief will significantly contribute to securing the company’s future in Monmouth, safeguarding any jobs that might be under threat.”

The total cost of relief measures come in at £75,000 with 25 per cent (£18,750) being funded from earmarked reserves within MCC and 75 per cent of relief funded by the Welsh Government.

Councillor Bob Greenland, cabinet member with responsibility for enterprise, said: “Tri-wall is a very important business to the Monmouthshire economy and one that we have a long relationship with.

“Tri-wall has asked for some short-term support from the council which we anticipate cabinet will agree today.

“We are confident that this will help the company continue to be successful into the long term and secure ongoing employment for the workforce.”

MCC’s cabinet will meet today (29th July) to decide whether or not to grant funding to the business.