Weatherford Announces Scottish Base Closure
Major US oilfield services company Weatherford has announced that it will close its base in Arbroath as the oil service giant looks to reduce costs due to the oil downturn.
The base which employs 45 people is expected to see around half of the employees transferred to Weatherford’s Aberdeen operation, whilst the remaining jobs remain under threat.
A spokesperson for Weatherford gave the following statement: “Following an extensive review of its global operations, Weatherford has proposed to further consolidate its UK manufacturing facilities, and will subsequently engage in a consultation exercise with employees at its Arbroath location.
“The global oil and gas sector has faced a prolonged period of challenging business conditions.
“In light of this, Weatherford has conducted a strategic review of the global manufacturing group to ensure that the cost structure and capacity is appropriate to the current and projected market environment.
“The outcome of this strategic review is the proposed closure of the Arbroath facility.
“Weatherford is however actively engaged in developing plans that are anticipated to create opportunities for the transfer of positions and plant and equipment to the main operational hub in Aberdeen.
“Prior to taking action on the proposed changes, the company will engage in a consultation exercise with elected representatives of those who may be affected.
Angus South MSP Graeme Dey said the decision mirrored actions taken elsewhere, but was disappointing for the employees and the local economy.
He said that, while the firm had been committed to Arbroath, the recovery in the North Sea oil and gas sector had not come quickly enough.
Mr Dey continued: “It seems that around half of the people employed in Angus will potentially have the chance to re-locate.
“But the loss of the other jobs and indeed the company within the town is a blow coming on the back of job losses in the engineering sector locally.”
Source: The Courier