Liquidation casts doubt on metal technology centre

The future of Manukau's planned $5 million light metals technology centre is looking bleak, as the company behind it goes into voluntary administration.

Debt-laden Australian autoparts maker Ion yesterday announced the form of bankruptcy after its bankers cancelled its main lending facility.

"Ion will not be able to meet its commitments for the capital expenditure programme required to complete its growth projects," it told the Australian Stock Exchange.

Ion's New Zealand division received $2 million from Technology New Zealand in August and contributed $3 million of its own money to a three-year research project to crack the secret of producing materials to replace heavy steel components in cars and motorcycles.

Construction of a light metals technology centre in Manukau City was part of the project.

Nobody from the New Zealand arm was available to comment yesterday but the failure of the centre could have wider implications for the manufacturing industry.

An Australian spokesman said a creditors' meeting was planned for Melbourne on Monday, when the future would be clearer. He said the liquidators had indicated they wanted to sell the company as a going concern.

The company's shares have fallen nearly 61 per cent this year to 93Ac.