General Electric Oil and Gas said today it is in consultation with workers in Peterhead after revealing plans to close its site in the town later this year.
A spokesman for General Electric (GE) said most of the 50 people it employs in Peterhead would be offered the chance to transfer to the company’s facilities in Aberdeen and Montrose.
But it is thought that a proportion of employees could be made redundant with no offer of relocation.
Yesterday, a “for sale” sign was put up outside the building being leased by GE on Blackhouse Way.
A transfer to Aberdeen may be a viable alternative for staff based in and around Peterhead.
Montrose is more than 70 miles from Peterhead, however.
The spokesman said the consultation would run until the first of October and that no employees were expected to leave until December.
The spokesman also said voluntary redundancy would be offered to employees in an effort to limit the number of enforced job losses.
He said: “Due to the long-term decline in the oil price, delays and cancellations of major global projects have resulted in a reduction in available work.
“To remain competitive and to continue meeting the needs of our customers, GE Oil and Gas is consulting with staff on proposals to transfer operations at the Peterhead facility to alternative sites in the north-east of Scotland, and close the site.
“Over the last year, the company has taken numerous proactive measures at the site to remain aligned to the realities of the global market, however further actions are necessary. The site’s closure includes some workforce reductions.
“This is not something that we take lightly and is in no way a reflection on the workforce. We believe that this is the right approach for the long-term health of the business, to run our business more efficiently, and to remain competitive in a challenging environment.
“We remain committed to providing information and advice to support our employees at this time.”
In August 2015, GE announced plans to lay off an unspecified number of employees at the same facility in Peterhead.
In January 2016, the US firm said its Scottish-based employees would not be affected by a move to reduce its headcount by about 600 in the UK.
GE said most of the redundancies were expected to take place at GE’s sites in Rugby and Stafford in England.
The move was part of wider plans to shed 6,500 employees in Europe.
At the start of this year, GE employed about 1,320 people in Aberdeen, 492 in Montrose, 74 in Peterhead, and 47 in Glasgow.
It also employed between 500 and 600 people at its aviation business in Prestwick.
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