Dundee engineering firm enters administration
42 people are set to lose their jobs as Dundee engineering company goes into administration.
42 people are set to lose their jobs as Dundee engineering company goes into administration.
PressureFab is the largest offshore container manufacturer in Scotland and recently announced it was going into temporary shutdown over the summer.
Administrators KPMG released the following statement:
Blair Nimmo and Tony Friar of KPMG LLP were appointed joint administrators of PresureFab Limited on 28 July 2016 at the request of its director. They were also appointed as joint administrators of its parent company, Twickler Industries Limited, and a further four group companies.
Dundee-based PressureFab Limited is a designer and manufacturer of specialist rig topside and subsea equipment and considered to be Scotland’s largest offshore container manufacturer. Operating from a 250,000 sq ft facility on the A90, the group has the resources to design and fabricate bespoke projects up to 2000 tonnes of steel volume and single components of up to 50 tonnes.
Despite an annual turnover of c£5.3m as recently as the year ending 31 January 2015, the company has been significantly impacted by the oil and gas downturn. A sharp fall in revenues has resulted in unsurmountable cash flow difficulties, ultimately leading to the administration appointment.
Over the past 18 months the Group has reduced costs in an attempt to mitigate the effects of reducing activity levels, with headcount reducing from a peak of approximately 100 in 2015, with the remaining 42 employees made redundant shortly before the Group entered administration.
The joint administrators will be helping the employees to claim their entitlements and will enlist their support, where appropriate, in realising the assets across the group.
Blair Nimmo, head of restructuring for KPMG in the UK said:
“PressureFab Limited is the latest firm to fall victim to challenging trading conditions in the oil and gas sector. As client orders were cancelled or postponed, the number of new business enquiries reduced significantly, leaving the company with no option other than to cease trading.
“We are currently reviewing the company’s financial position as we seek to complete certain orders and realise stock. The company is widely considered to be a leading manufacturer for the sector and we anticipate there will be interest in the company’s infrastructure including its property, plant and intellectual property. We would encourage any party with an interest in acquiring the company’s assets to make contact with us as soon as possible.”
Anyone with an interest in buying the business and assets of the Company should contact Tony Friar, Joint Administrator, on +44 (0)141 300 5661 or in writing to:
KPMG LLP 191 West George Street Glasgow G2 2LJ