More than 60 jobs have been axed after falling orders caused an engineering firm to go into administration.

Efforts are being made to find a buyer for Central Metal Manufacturers, of Merry Lees industrial estate, near Desford, which will safeguard the remaining 67 staff.

Workers were left shocked yesterday after being told there would be 63 immediate redundancies.

It is the second time in just over two years the company, which makes sheet metal products for a range of industries, has gone into administration. The business is continuing to trade.

Administrator Joanne Wright, of restructuring firm BDO Stoy Hayward, said: "The economic downturn combined with a contraction in the manufacturing sector has severely impacted on Central Metal Manufacturing and led to its administration. We are, however, continuing to actively seek a buyer for the business and hope to achieve a successful outcome."

A shopfloor worker, who has been at the firm for more than 20 years and who did not want to be named, said: "We had no idea this was going to happen. It was a real surprise."

David Sprason, county councillor for Desford, said: "It is very disappointing to lose this number of jobs from the area. The county and borough councils will do all they can to help those who are affected."

Leicester businessman Dennis Kent, vice-president of the Midlands branch of the Engineering Employers' Federation, was optimistic that a buyer could be found.

"It is an attractive business, so there will be some interest in buying it, which could save the majority of the remaining jobs."

The company, then called Midland Sheetmetal, went into administration in February 2007 before being bought by its management, safeguarding a total of 162 jobs.

Earlier this year the firm made 13 redundancies because it was "adjusting to changes in sales".

In the past few months, about 250 jobs have been lost at another Desford manufacturing firm, Caterpillar (UK), because of the global economic slump.