PressureFab – the Dundee-based designer and manufacturer of specialist rig topside and subsea equipment and considered to be Scotland’s largest offshore container manufacturer – has gone into Administration with the loss of 125 jobs
Operating from a 250,000 sq. ft. facility on the A90, the group had the resources to design and fabricate bespoke projects up to 2,000 tonnes of steel volume and single components of up to 50 tonnes.
Only last year, it invested more than £1 million in new capital tooling equipment and recruited 25 more staff to its 100-strong workforce.
But despite an annual turnover of c£5.3 million 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 resulted in unsurmountable cash flow difficulties and has ultimately lead to the appointment of KPGM as Administrators. KPMG have also appointed as joint administrators of the parent company, Twickler Industries Limited, and a further four group companies.
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.
Blair Nimmo, head of restructuring at KPMG, 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.
“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.”