Around a dozen jobs are under threat at a Dundee industrial component repair specialist.
Aerospace Tooling Limited (ATL) provides a range of repair and refurbishment services for the aerospace and industrial gas turbine sectors from its base at Baldovie Industrial Estate.
The firm, which is backed by the venture capitalist outfit Foresight Group, enjoyed strong trading last year when profits more than doubled to £4.2 million, but work levels have dropped off in recent months.
In a trading update in August, Foresight said it had expected ATL’s 2015 sales and profitability to be lower than the “exceptional” 2014 performance but the actual result was weaker than had been forecast following a poor final quarter.
ATL has now moved to put staff on notice of redundancy and a consultation exercise is being carried out over the potential job losses.
However, chairman Mike Lloyd said it was not all downbeat as the company is bidding for major contracts that, if secured, have the potential to more than reverse the current job loss programme.
“I can confirm that Aerospace Tooling is implementing a restructuring and cost reduction plan as a result of reduced work flow, primarily driven by factors associated with oil price deflation,” Mr Lloyd told The Courier.
“As part of the cost reduction plan we are in consultation with our employees to right size the business in light of this reduced workflow and to ensure the long-term health of the company.
“However, we are currently in discussions with major customers in regards securing large contracts which may commence in early 2016.
“If we are successful, our cost reduction plan will be reversed and conversely we will implement a significant recruitment drive amongst the local Dundee workforce.
“Our shareholders remain extremely supportive and continue to invest in the company.”
Mr Lloyd said that despite the short-term issues, the firm was planning for a strong future in a growing market sector.
“ATL has recently recruited a high calibre CEO with extensive experience in the industrial turbine market,” he added.
“He will join the business early in the new year at which time we will make a formal announcement.
“The appointment represents a real coup for ATL and provides further confidence in the company’s long-term strategy.”