French pipeline maker Vallourec (PAR:VK) is closing its machine and pipe shop in Aberdeen due to “challenging North Sea market conditions”.
The closure which will complete by the end of October means the loss of 23 jobs across its facilities in Scotland, but the firm said “most of the employees affected have already found” a new role.
Vallourec Oil and Gas UK in Scotland includes the workshop in Aberdeen’s Bridge of Don and a pipe yard, inspection, rig-ready and stock management services in Fordoun, Aberdeenshire. It also has an operation in Bellshill near Glasgow.
The firm said it will be relocating its inspection services to a nearby site operated by Hunting (LON:HTG), which runs an OCTG tubular threading facility on a former aerodrome.
Vallourec said Hunting would be a new licensee offering a “restricted” VAM connection line.
It added that Hunting is already handling the firm’s tubular management services (TMS).
In a statement a spokesman said: “Due to the challenging North Sea market conditions leading to the further reduction of UK’s oil and gas activities, we have determined that we needed to further adapt our setup to secure our future.
“Bridge Of Don is a specific situation compared to other accessories workshops in the group.
“We do not have the critical size and further investment into the machine shop would not guarantee necessarily the desired outcomes to justify its continuation.
“Consequently, it is proposed that we will cease our Bridge of Don machine shop and inspection operations by the end of October 2024.”
He added: “It is anticipated that this will result in a reduction of approximately 23 positions in Aberdeen and Bellshill with some finance and IT roles being relocated to Aberdeen, all personnel affected will be given the opportunity to apply for the existing and new vacancies.
“Our priority is to support all affected employees during this transition and will continue to communicate openly and transparently throughout this process. Most of the employees affected have already found a job, even though we’re only a few weeks after the end of their contract.””
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