Hunslet-Barclays of Kilmarnock who specialise in the refurbishment and repair of rail vehicles, has been forced to axe 16 staff at its plant, despite being on track to grow its turnover by more than 10 this year. the company has gone into administration.

Administrator KPMG said it had already had "some interest" in Hunslet - which in the past has carried out work in both the UK and overseas, including for First ScotRailand the Glasgow Underground. The joint administrator and head of KPMG Restructuring in Scotland, Blair Nimmo, said a competitive market combined with difficulties in specific contracts and inefficiencies in the business, had made it impossible for Hunslet to continue.

A series of management changes and a restructuring programme were put into place by the firm, but it is understood a lack of cash, either in the company itself, or from Hunslet's parent company, the Austrian-owned Waagner Biro group, forced it to call in the administrators.

Hunslet-Barclay, employs 138 staff, including the 16 who are to lose their jobs, had a turnover of £9 million for the year to 31 December 2006, while turnover for the year to 31 December 2007 was on target to exceed £10m.