A SCOTTISH engineering firm has ceased trading after 50 years, with all staff made redundant.
The Aberdeen-based Belmar Engineering has gone into liquidation with the immediate loss of all 48 employees.
Staff were informed of the situation at a meeting yesterday (Tuesday). A letter was also 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, claims reviewed, and debt documentation analysed.
The value of owned equipment located within Belmar’s leased premises at Abbotswell Road, Aberdeen, will be determined by a valuer and an auction is likely to be held.
Belmar was established in 1975 and operated from a 37,000 sq ft workshop. It provided medium to large turning, milling, boring, weld overlay and NDE (Non-Destructive Evaluation). Belmar produced components for subsea systems and landing strings, including lubricator valves, accumulator mandrels, retainer valves and subsea test trees.
Pressures of increased international competition, losses in recent years and falling orders are cited as reasons for the closure.
Liquidator Michael Reid, based at MHA’s offices in Carden Place, Aberdeen, 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.”
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.
