Arbroath has suffered another misfortune in its engineering sector after the folding of Axon Well Intervention Products with the loss of 36 jobs.
Today (Tuesday) administrators were called into the oil & gas industry service company which has its Arbroath-arm based at the Kirkton Industrial Estate.
It is understood that the move was the result of the continuing trading difficulties in the global energy market, but is not thought to affect the other arms of Houston-based Axon Energy Products.
Gordon MacLure and Ewen Alexander, partners at Johnston Carmichael, have been appointed as joint administrators to Arbroath-based Axon Well Interventions Products UK Ltd.
Axon, which manufactured and supplied equipment to oil and gas companies, employed 36 people at its 20,000sq. ft facility, all of whom will be made redundant. The business is part of the Axon Energy Products Group. No other parts of the business will be affected by the administration.
The bulk of the company’s revenue came from orders for the design and manufacture of new equipment, with additional revenue coming from refurbishment and servicing requirements.
Joint administrator Gordon MacLure said the ongoing challenges in the oil and gas sector had been an insurmountable problem for the business.
He said: “Unfortunately Axon is the latest in a string of failures in recent months, thanks to the continuing low oil price environment. Axon has had a strong business but has been unable to overcome the difficulties caused by a sustained downturn in customer capital expenditure requirements, which ultimately dictated its flow of orders.
“We’re now seeking buyers for the remaining assets of the business, including equipment and property.”