French firm Vallourec is set to close its Aberdeen machine and pipe store, citing the “challenging” North Sea market as the reason.
The move, reported by Energy Voice, will also see the loss of 23 jobs, but the company said the majority of those affected had already found an alternative role.
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The shutdown of the Bridge of Don facility is anticipated to be finalised within the upcoming week.
Vallourec Oil and Gas UK in Scotland included the workshop in Aberdeen’s Bridge of Don as well as a pipe yard, inspection, rig-ready and stock management services in Fordoun, Aberdeenshire. Additionally, it operates a facility in Bellshill, near Glasgow.
The company has announced that it will be moving its inspection operations to a location close by, which is managed by Hunting. This new site features an OCTG tubular threading facility that was once part of an aerodrome.
In a statement Vallourec said: “Due to the challenging North Sea market conditions leading to the further reduction of UK’s oil and gas activities, we have determined that we needed to further adapt our setup to secure our future.
“Bridge of Don is a specific situation compared to other accessories workshops in the group.
“We do not have the critical size and further investment into the machine shop would not guarantee necessarily the desired outcomes to justify its continuation.
“Consequently, it is proposed that we will cease our Bridge of Don machine shop and inspection operations by the end of October 2024.”
