Administrators from CVR Global were called in after Sips, which trades as Sips Eco Panels, suffered substantial trading losses.

The firm manufactured structural insulated panels for use in the housebuilding process at its Viewfield Industrial Estate base in Glenrothes. The company’s products were sold into both the commercial and private markets.

Joint administrators Elias Paourou and David Oprey confirmed that all 40 staff at the Glenrothes facility and at its head office in Suffolk had been made redundant.

CVR said Sips had run up substantial losses which had led to contracts not being fulfilled.

Elias Paourou said: “Many of its customers are people who have taken on self-build projects and have paid for products which have not been received, so the situation will be devastating for a lot of people.

“We are in the process of carrying out a full review of the company’s affairs, but unfortunately the company has ceased trading and all staff made redundant while we attempt to find a positive outcome.

“We are in talks with parties who are interested in buying the business and will be updating creditors in due course.”