First Components on Wallows Industrial Estate, Wallows Road, has been going for nearly 18 years.
The company entered administration on Monday, a situation described as "terrible" for investors, employees and sub contractors by Dudley Council's deputy leader, Judy Foster.
Diana Frangou and Gareth Harris of RSM UK Restructuring Advisory, Birmingham were appointed as joint administrators.
The business served a wide range of industries including aerospace, automotive, medical through to electrical, white goods and general engineering.
It had lost a significant contract which was having an impact on the company’s cashflow and also recently went through a change in ownership which impacted its ability to continue to trade.
With the start of the administration trade was suspended and the company’s 56 employees were immediately made redundant.
The administrators are seeking a buyer for the business, but will look to maximise realisations from the company’s assets to pay creditors.
Diana Frangou said: “The cashflow issues coupled with the change in ownership and structure, resulted in administrators being appointed, to protect not only the creditors interests but most importantly ensure the employees were not left in abeyance.
"Regrettably, we have had to make the entire workforce redundant, and our first priority is to assist them both with making their claims from the Redundancy Payments Office and offering general support and advice in these difficult circumstances.”
Dudley Council deputy leader Judy Foster, of Brockmoor and Pensnett ward where the site is based, said: "This is absolutely terrible news for the people who have invested in and rund the business and terrible news for the employees, possible sub contractors and those who they bought parts from.
"I wish the administrators every success in finding a new buyer and hopefully the new operator will consider taking back those people who have found themselves out of work.
"In the meantime I would advise the people made redundant to make full use of the services available to them at Dudley Council Plus and the job centres."
Another ward councillor Rebbekah Collins added: "It is very sad that this company has gone to the wall with the loss of so many jobs. Hopefully the council and other agencies will be able to assist in either retraining or finding alternative employment.
"Overall the local economy is holding up well and recovering well from the pandemic. But obviously my heart goes out to those people who have lost their jobs."