Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Arbroath firm calls in administrators as 36 jobs are lost

Axon's Arbroath factory.
Axon's Arbroath factory.

Arbroath has been dealt another jobs blow with confirmation that Axon Well Intervention Products UK Ltd has gone into administration with the loss of 36 jobs.

The firm manufactured and supplied equipment to oil and gas companies at its 20,000sq. ft Kirkton Industrial Estate facility.

It is part of the US-based Axon Energy Products Group but 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 for the oil and gas sector, with additional revenue from refurbishment and servicing requirements.

Joint administrator Gordon MacLure of Johnston Carmichael said the ongoing challenges in the oil and gas sector had been an insurmountable problem.

“Unfortunately Axon is the latest in a string of failures in recent months, thanks to the continuing low oil price environment,” he stated.

“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.”

Reports of Axon’s demise were circulating round Arbroath for several days and there was little sign of activity at the workplace on Tuesday.

Fears were realised when Johnston Carmichael issued a statement confirming their appointment as administrators.

Axon had been in Arbroath since 2011, when it took over Mechserv’s operation in the Angus town and also in  Dubai.

At the time of the takeover Axon chief executive Gary Stratulate said Mechserv’s high-quality operations would expand its service in Europe and the Middle East.

The oil price collapse has undermined the industry, off and onshore, and Arbroath has not escaped the list of casualties.

Over the last two years Axon paid off about half of its one-time 70-strong workforce, and there was hope that the move would be enough to save the firm.

Angus South MSP Graeme Dey said: “These are really difficult times in the oil and gas related engineering sector with many companies trying to come through the challenges they face either by cutting back on production hours or shedding jobs.

“Some firms simply aren’t able to survive through adopting those approaches. That appears to be what has happened with Axon’s Arbroath based division where reductions in workforce numbers had already been implemented.

“Coming on the back of Halliburton making redundancies a few months back the news about Axon is obviously disappointing for the local economy.”

The SNP member said he was trying to speak to the local PACE team to alert them to the need to provide support for the staff.

Already a subscriber? Sign in