A UK engineering firm, with ties to the North Sea oil industry, has fallen into administration in a move that will see all members of staff made redundant.
Glacier Energy Manufacturing Limited, owned by Aberdeen-headquartered Glacier Group, ceased operations at its manufacturing site this week after struggling with declining demand in the North Sea oil and gas sector.
The parent company stated: “We have made the difficult decision to close our manufacturing facility in Stockton on Tees, with one of our entities, Glacier Energy Manufacturing Limited, being placed into administration.”
Workers were informed of the redundancy process earlier this week, with the Scottish owner confirming the permanent closure of the manufacturing division.
UK engineering firm with North Sea oil ties falls into administration – with ALL jobs lost
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GETTY / GLACIER ENERGY
The Stockton facility previously operated as Francis Brown before Glacier Group purchased it through a pre-pack administration deal in August 2024.
In a statement, the parent company explained: “Despite significant efforts to turnaround the business, due to market challenges and the current fiscal regime, activity levels in the North Sea oil and gas market have been significantly impacted and new energy markets slow to materialise.”
Financial difficulties emerged as early as December 2024, with the company acknowledging that mounting losses within the division had “sadly become unsustainable”
The wider Glacier Group will maintain its other operations, continuing to deliver mechanical solutions and inspection services across energy and industrial markets.
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Adele MacLeod and Clare Boardman from Teneo Financial Advisory took on the role of joint administrators in October and have since issued their initial report.
The administrators noted: “Shortly following incorporation, the company experienced a softening of trading conditions and a significant decrease in the number of large-scale capital expenditure projects within traditional oil and gas markets, with customers focusing on repairs and maintenance to existing infrastructure rather than new investments.”
At the point of entering administration, the business carried total debts of £133,000, with secured creditor IGF Business Credit Limited owed £26,000.
The administrators indicated that unsecured creditors are unlikely to receive any distribution from the remaining funds.
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Earlier this week, reports suggested BP P has started discussions with another energy firm to sell its North Sea assets.
The UK oil giant is understood to have spoken with Ithaca Energy about the possible sale, in a deal that could be worth nearly $2billion.
This comes after the Labour Government unveiled plans to introduce legislation banning new North Sea oil and gas exploration licences as part of its Energy Independence Bill.