Nearly 100 jobs lost as two engineering firms appoint administrators

Both subsidiaries of Glenalmond Group Limited, administrators were appointed on Friday.

Nearly 100 jobs lost as two engineering firms in East Kilbride appoint administrators Google Maps

Nearly 100 jobs have been lost at two manufacturing firms under the same group in South Lanarkshire.

Valve Components Ltd, a subsidiary of the Glenalmond Group Limited, based in East Kilbride became insolvent with Unite the Union claiming around 100 workers were given “no notice” of the company’s collapse last week.

Administrators from FRP Advisory were appointed at Valve and International Oilfield Drilling Supplies Ltd, another subsidiary of the Glenalmond Group, on Friday, March 15.

Ninety seven redundancies were made across the Valve business and the wider Glenalmond Group.

The group said 24 employees have been “temporarily retained” to assist the administrators to “complete customer work in progress” and “prepare the assets of the company for sale.” 

Valve, established in 1987, provided turnkey production services to the oil and gas, defence, aerospace and energy industries.

The manufacturing firm faced “challenging” trading conditions due to a number of loss-making contracts, lack of future order book and an “increased fixed cost base” following the Covid-19 pandemic.

Unite claims that “no notification or consultation” was afforded to the workers or the union as representatives.

Sharon Graham, Unite general secretary, said: Unite will do everything it possibly can to support the Valve Components workers.

“We have already approached a number of Glasgow-based employers to explore potential job opportunities for the workers.

“Yet again, another company appears to be breaching the law by not informing or consulting the workforce in a redundancy situation.

“Be in no doubt, Unite will hold Valve Components and every other employer who breaches the law to account.” 

Unite claimed it is in the process of contacting its members from the firm in order to progress protective award claims.

Debbie Hutchings, Unite industrial officer, added: Valve Components worked largely within the aerospace sector, and it had employed highly-skilled workers for many years with some of the staff having been there for over 30 years.

“We were aware that the company had experienced financial difficulties due to a low order book and it had been looking for buyers.

“However, the news of insolvency came as a massive shock.

“It’s absolutely devastating news for the workers. It’s disgraceful that this was left so long to the point of putting the workforce out of a job with no notice or any warning.”

FRP Advisory assisted the Glenalmond Group with the sale of its subsidiary company, IODS Pipe Clad Limited, to a Scottish-based manufacturing business.

The sale safeguards 47 jobs and secures the future of the turnkey supplier of pipe and pipe-related products with weld overlay cladding to the oil and gas sector worldwide.

A statement from FRP read: “Unfortunately, it was not possible to secure a sale of fellow group companies.

“Accordingly, on March 15, 2024 Michelle Elliot and Alan Kelly of FRP Advisory Trading Ltd were appointed as joint administrators of Glenalmond Group Limited and two of its subsidiary companies, Valve Components Ltd (“Valve”) and International Oilfield Drilling Supplies Ltd.

“Following the administrators’ appointment, the Valve business ceased trading resulting in 94 redundancies with a further three redundancies in Glenalmond Group Ltd.

“24 employees have temporarily been retained in Valve to assist the joint administrators complete customer work in progress and prepare the assets of the company for sale. 

“Neither Glenalmond Group Ltd or International Oilfield Drilling Supplies Ltd are trading.

“Valve Components Limited faced challenging trading conditions primarily due to a number of loss-making contracts, lack of future order book and an increased fixed cost base post-Covid, which resulted in cash flow difficulties and impacted its ability to operate. 

“Despite best efforts of management to implement a turnaround whilst also exploring a potential sale of the business, it was not possible to find a buyer for Valve Components Limited and the decision was made to appoint administrators.

“The joint administrators will now work in conjunction with PACE to support the staff that have been impacted with their applications to the redundancy payments service and realising the remaining assets of Valve Components Ltd which consists of work in progress and plant and machinery.”

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