All jobs lost as Aberdeen firm Belmar Engineering collapses after 50 years in business

An engineering firm based in Aberdeen has appointed liquidators with all jobs lost after 50 years in business.

Liquidators MHA were appointed at Belmar Engineering based in West Tullos after an extraordinary resolution to wind up was lodged on Tuesday.

STV News understands staff were informed of the news in a meeting on Tuesday morning and told to empty lockers and leave the building.

Belmar, set up in 1975, says its main products are components for subsea systems and landing strings in the oil and gas industry.

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 the firm’s 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 will be determined and an auction is likely to be held.

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.”

Belmar Engineering has been contacted for comment.