Oil and gas pipeline engineering firm goes out of business
Pipeline Engineering & Supply Co. has fallen into administration.
The company, which employed 83 people, is a UK subsidiary of New York-listed Circor International, but headquartered in Catterick, North Yorkshire, with operations in Aberdeen and Dubai.
The business was well established, operating for over 50 years and was a leader in the design, manufacture and testing of pipeline pigging and flow assurance products; predominantly in the oil and gas sector.
The group had recently reported accounting irregularities in financial statements of the company, which led to a strategic review of options and underlying performance. This included a sale process for the business and assets; but no buyer was forthcoming.
Jimmy Saunders, joint administrator from Kroll, said: “The business was loss making as its cost base and infrastructure were not aligned to revenues.
“The group has made substantial investment into the company, but together with the current economic uncertainty and cost inflation in manufacturing, it was unfortunately unable to continue to provide financial support.”
Pipeline Engineering & Supply has ceased to trade with immediate effect and the administrators are working with the relevant authorities to provide support to employees.
The appointment has no impact on the remainder of the Circor International’s businesses in the UK.
Published: 15-04-2022
