By Stefan Morkis and Graham Huband

DOZENS OF jobs are to be axed at Dundee company Texol Technical Solutions as a result of it going into administration.

The Myrekirk Road firm, which employs 150 people, has been forced into the move after expected orders—understood to be from NCR—did not materialise.

Texol Solutions’ managing director Brian Frame said yesterday, “It has become apparent over the last few weeks that the anticipated business/orders from a major global customer will not materialise in the near future.

“As a result, it is with deep regret that the board of directors of Texol Technical Solutions have been left with no alternative but to request our bankers to appoint an administrator to protect the best interests of the stakeholders in the company.

“The board believes that the remainder of the business represents a viable concern, and intense negotiations continue to identify potential interested parties, but at this stage it appears inevitable that the number of employees in the business will be significantly reduced.”

Formed in 1998 after management and employees bought part of NCR’s parts making department, where Mr Frame worked as an engineer, Texol offers a range of engineering and manufacturing services.

A year ago, when NCR cut 650 jobs in Dundee and moved the bulk of its manufacturing operations to Hungary, Texol reported an increase in business from the cash-machine makers.

However, it now appears orders from NCR have dropped, putting the entire company at risk.

Dundee and Angus Chamber of Commerce president Gary Langlands said, “The business model Texol have been trying to build up for the past number of years was to develop products outwith the NCR portfolio— obviously the business Texol has been able to build up outwith NCR has not been sufficient.

“I think it is fair to say that in the history of companies going into administration the end result doesn’t tend to a good one, because it tends to be a last resort.”

Mr Langlands continued, “This is a prime example of an extremely well run company finding itself in difficulty because the supply route has moved to another part of the world.

“I don’t want to be the harbinger of doom, but other companies have already been finding themselves in that position.”

Jill Farrell, operations director with Scottish Enterprise Tayside, said the organisation had been working closely with Texol in recent months to identify new business opportunities for the firm.

She believed certain sections of the business remained viable and hoped a buyer could be identified to take it on as a going concern.

She said, “The administrators’ first move will be to try to find new markets and customers for Texol’s products and sell the company as a going concern.”

Dundee West MP Jim McGovern said, “I sympathise with the workers at Texol who are facing this uncertainty.

“I am meeting Brian Frame on Friday to discuss any measures that we can take to minimise job losses.”

He added that he and Dundee City Council administration leader Kevin Keenan were in discussions with another company about its possible relocation to the city.

“We are doing everything we can to bring jobs to Dundee,” he said.

A spokeswoman for NCR said, “We evaluate our supply requirements continually in line with our worldwide operational needs.

“We remain a significant employer in Dundee through our global research and development department and manufacturing facility for new product introductions and low-volume, high complexity products.”

Dundee West MSP Joe FitzPatrick said, “My first thoughts are for any staff that are likely to be losing their jobs.

“It is a huge disappointment —Texol has been an important company for a number of years, and my understanding is that it is partly a knock-on effect of NCR moving business abroad.”

He said he would be speaking to Scottish Government ministers about how it can turn around Dundee’s ailing manufacturing sector.

“Dundee requires a manufacturing sector, and I will be doing all I can to support it,” he said.

Stewart Hosie, Dundee East MP, added, “It is obviously extremely disappointing, particularly since this is an employee-owned company.

“It is clear that the company is working in the clear interests of the stakeholders.

“I very much hope, as the board has made clear, that there is still the possibility of a viable business; however, this will be on a smaller scale than the current Texol operation.

“The board has my full support in their ongoing negotiations, and I hope that a phoenix might yet rise from the ashes.

“It is another blow to Dundee, and I spoke again yesterday to Stephen Timms, the business minister, to advise him of the urgency of a speedy meeting to consider the loss of manufacturing jobs in the city.”

Dundee City Council economic development convener Joe Morrow said he would be seeking an urgent meeting with the Scottish minister for enterprise, Jim Mather, about the situation.

He said, “I am obviously concerned about the future of the company and its employees in particular.

“I certainly hope that something can be done at this stage to help save the jobs of those who work there.

“The city has suffered high levels of job losses, particularly in manufacturing, over the last couple of years, and although Dundee is a very resilient place it really is time for the Scottish Government to focus its efforts on helping the city.

“The Scottish Government needs to produce jobs for Dundee, and I will be doing everything I can to encourage it to do so.

“I am seeking a meeting with the minister for enterprise to press the city’s case for urgent attention.

“Dundee needs action on jobs and it needs it now.

“Our door is always open so that we can play our part in helping the city’s economy.”