An Aberdeen engineering firm has entered liquidation and made 48 people redundant.
Belmar Engineering had struggled with increased international competition, losses and falling orders, which had an impact on the firm, according to liquidators.
Michael Reid of MHA will wrap up the affairs of the Abbotswell Road based business.
Staff were informed of the situation at a meeting yesterday.
Belmar Engineering closure ‘final option’
Belmar was established in 1975 and operated from a 37,000 sq ft workshop in the West Tullos Industrial Estate.
It provided medium to large turning, milling, boring, weld overlay and NDE (Non-Destructive Evaluation).
Liquidator Mr Reid said efforts were made to salvage the operations.
He said: “Prior to liquidation, the board tried to sell the business, in whole or in part, but were unsuccessful.
“They sought to review operating processes and pricing structures, however, without a base level of work, the factory was not viable.
“The decision to close was taken as the final option. I will ensure that all employees are fully advised about the process for claiming their employment entitlements, including unpaid pay, pension deductions, accrued holiday pay, notice pay and redundancy.
“This is the second local engineering company that has appointed me liquidator in the last month and perhaps reflects the challenges facing this type of business at the moment.”
‘Several millions of pounds owed’
Pressures of increased international competition, losses in recent years and falling orders are cited as reasons for the closure.
A letter has been sent to all known creditors – around 80 in total made up of trade suppliers, utility providers, finance companies and HMRC.
There is believed to be several million pounds owed to creditors, however, the final amount they will receive will not be known until assets are sold and claims reviewed.
The value of owned equipment within Belmar’s leased premises will be determined by a valuer and an auction is likely to be held.
Mr Reid was also appointed liquidator of JIQ Manufacturing Limited, which operated from premises in Crathes, Banchory, on April 4. All four employees were made redundant.
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