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More than 140 jobs lost as South Korean-owned modular firm collapses.
Modular construction manufacturer Elements Europe has entered administration, with 141 of its 217 staff made redundant and the remaining 76 retained to assist with the process. The UK company, based in Telford, Shropshire, specialised in volumetric modular room systems and prefabricated bathroom pods.
Sam Birchall and Steve Absolom of Interpath Advisory were appointed joint administrators on 4 June 2025. Founded in 2005 and acquired in 2019 by South Korean conglomerate GS Engineering & Construction, Elements Europe had operated for nearly 20 years supplying offsite solutions to the UK’s residential, student and hospitality sectors.
Until recently, the company operated primarily as a subcontractor, delivering pre-manufactured systems to developers. In 2021, it moved into principal contracting, taking on two large-scale construction projects: East Road in Hackney, east London, and Camp Hill in Birmingham. According to the administrators, both contracts incurred significant losses and triggered unsustainable cash requirements.
Interpath stated that the directors had pursued options for a sale, external investment or refinancing, but concluded that administration was necessary to protect creditors’ interests.
Financial records show the company was already under pressure. In its most recent accounts for the year ending December 2023, Elements Europe reported turnover of £42 million (AUD $81 million), nearly double the previous year. However, losses also widened dramatically, with a pre-tax loss of £29 million (AUD $56 million), up from £5.8 million (AUD $11.2 million) in 2022. A revaluation of contract provisions in August 2023 increased expected losses from £15.6 million (AUD $30.1 million) to £29 million (AUD $56 million).
Joint administrator Sam Birchall said: “Sadly Elements Europe has not been immune to the headwinds facing the construction sector. Our intention is to pause work on the ongoing contracts at East Road and Camp Hill whilst we explore options to rescue all or parts of the Elements business.”
Absolom confirmed they are seeking buyers for the company’s assets and encouraged interested parties to come forward.
Despite continued demand for modular building systems in the UK, the collapse highlights the risks of vertical integration when offsite specialists enter general contracting roles without adequate financial buffers.
