Oil and Gas Pipeline Provider Shuts Down After Six Years of Losses

Proclad International Forging has confirmed the closure of its Livingston site, after losses for six consecutive years.

The oil and gas pipeline provider said the decision would result in the loss of 10 employees. However, employees will be offered alternative roles within the group “as far as possible”, in order to retain their services.

The company is currently finishing work on its order books ahead of the shutdown.

Proclad has confirmed that the company will keep its headquarters in Glenrothes open, although the group has been losing money every year since 2016.

The company was restructured in 2015 with the aim of reducing costs.

The most recent accounts, up to the period ending November 2020, showed losses of £313,499. These were down from 2019, when he lost £680,511. The profit and loss account revealed he had lost £3million in total.

The company owed £2.8million in a year to creditors. In 2020, he claimed £9,447 from the UK government’s furlough scheme.

Mark Penman, director of Proclad, blamed the pandemic for putting “the nail in the coffin” for the company, noting “fundamental shifts in the market” that led to “long-term business challenges and difficulties “.

He explained that low volumes and short delivery times, in a “niche market”, meant the company struggled to recover from a market downturn in 2015. not seen a recovery and I think customers who used to come to the company have now moved to China and Italy to manufacture at a much lower cost than we can produce.

“The company would have paid people earlier, but because the work volumes weren’t there, it was strategically held back with a view that the company would be financially supported until the market recovered.

“However, the market did not recover, so the decision was made to close the business,” Penman added. “We have backed the business for six years with millions of pounds of investment, but the financial resources are limited, we simply cannot continue to invest in loss-making businesses.”

Proclad is a subsidiary of Kuwaiti oil and gas services giant National Industries Group.

Penman wrote in his director’s report, “The directors propose to liquidate the business of the business in an orderly manner with planning for the event underway.”

A former employee of the company told Insider: “The company has had losses for many years – it was not in stable condition before Covid arrived.

“They had a restructuring many years ago and it actually lost half the workforce, but it still wasn’t enough; it’s sad to see a 25 to 30 year old company go.

Don’t miss the latest headlines with our twice-daily newsletter – subscribe here for free.

About Keith Tatum

Check Also

AGIP pipeline leaks large amounts of gas

September 20, 2022September 20, 2022100 Illustrative picture The Kolo-Otueke-Bayelsa Palm Road …