British Engines Redundancies

British Engines Announces 225 Redundancies.
Engineering group British Engines announces 225 redundancies. The Newcastle based group employs around 1,500 people at sites around Tyneside and the wider North East. More than 200 jobs are to be cut at a Newcastle engineering group after the coronavirus lockdown hit demand for its services.

British Engines has opened consultations over 225 redundancies, saying it has seen a drop in demand that it expects to last for the foreseeable future.

The group, which is approaching its centenary, currently employs around 1,500 people at a number of companies around the North East.

The job loss announcement comes a day after Nissan cut nearly 250 jobs at its Sunderland plant, after announcing it would not be renewing contracts for some temporary staff.

British Engines chairman Alex Lamb said: “As a family run business built on the strength of our people, it is with the deepest of regret that we have announced 225 jobs are at risk. The impact of COVID-19 has seen a fall in activity across our businesses, which has necessitated a review for the medium to long term.

“This review has made it clear that for the foreseeable future, economic activity is likely to remain at greatly reduced levels.

“In particular, this review has been influenced by the likely path of the oil and gas industry, and our customers’ recent announcements, forcing the company to conclude that it is highly unlikely that activity in this sector will recover to anything like the levels seen in previous years.

“In recognition of the move away from fossil fuels, we have been working over the past five years to diversify our revenue streams away from oil and gas. However, the impact of COVID-19 and subsequent reduction in the oil price has accelerated the forecast decline inthe levels of investment in this sector, which consequently has a direct impact on our business.

“This impact has been compounded by corresponding falls in activity across the construction and aerospace sectors, which are two of the markets that the company is focussing on for the future. This has been an extraordinarily difficult decision, it has however been taken to ensure that we see the business sustainably through these unprecedented times.”

British Engines, which will mark 100 years in business in two years, operates eight businesses across the region in offices and factories in Newcastle, Longbenton, Killingworth, South Shields, Cramlington, Gateshead and Bishop Auckland.

It has suffered a turbulent few years due to a massive downturn in its main oil and gas market, announcing more than 150 redundancies.

But in January the group was looking towards a recovery, with directors saying that “restructuring activities undertaken over the last few years have placed the group in a better position to grow and be more resilient to changes in the global economy.”

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