Hartlepool pipe coating plant set to close with loss of 40 jobs as orders dry up
All workers at a Hartlepool pipe coating plant are facing redundancy with the company to close due to a lack of orders.
BSR Pipeline Services Limited, on Brenda Road, which employs 40 people, is set to enter Members Voluntary Liquidation as it winds down its operations.
Since 1988 the business has provided pipe coating services to the oil and gas industry which helps protect them from corrosion.
But with the order books empty and unsuccessful attempts to try to find a buyer, the directors have taken the decision to enter liquidation.
A fall in market demand combined with other countries building their own facilities, Brexit, US tariffs and Covid, are all said to have contributed to the demise of the Hartlepool plant.
BSR say all 40 workers will receive full notice pay and redundancy packages.
Hartlepool MP Mike Hill described the news as “a tragedy”.
It comes just a day after TT Electronics announced it is to manufacture a revolutionary new Covid-19 test at its Hartlepool site expected to create up to 100 new jobs.
A spokesperson at BSR said: “BSR has come to a natural end of its contracted work and, given the significant reduction in demand and challenges facing the economy, we’ve taken these steps to start the orderly wind down of our operations.
“Our team is onsite and online to support all of our staff through this difficult period and ensure they have full access to their pay and redundancy packages.”
The business, which remains solvent, has completed all of its outstanding projects.
Liquidators from business advisory firm ReSolve are expected to be appointed in the coming weeks to formally close the company and ensure that there are no outstanding financial liabilities.
Mr Hill, who has been in contact with BSR managment said: “I understand fully that the oil and gas industry has suffered a downturn over recent years and uncertainty over Brexit and the impact on trade tariffs isn’t helping, but this is specialist work being provided to the market and once those jobs and skills have gone then they have gone for good.
"This announcement truly is a tragedy for the people and families affected and my heart goes out to them.”