Heating company to cut 224 jobs

Job cuts at ECG have been blamed on trading losses

A total of 224 jobs are to be lost at a company in Lanarkshire, it has emerged.

ECG Group, which has its headquarters in Blantyre, called in receivers on Friday.

The remaining 33 members of the workforce in Blantyre will assist the receivers in realising the maximum value from the business and its assets.

The firm installs heating and ventilation systems and has carried out contracts in schools and local authority housing.

Joint receiver and head of KPMG Corporate Recovery in Scotland, Blair Nimmo, said: "The business had grown substantially over the last two years to an annualised turnover level of £45m.

'Problematic contracts'

"However the recent discovery of a number of problematic contracts where substantial losses were continuing to be incurred, left the directors with no choice but to the request the appointment of receivers.

"Whilst it is regrettable, the current financial situation means that the receivers have no option but to make 224 redundancies with immediate effect."

Mr Nimmo added: "It is disappointing that we have not had the time to consider some form of restructuring of the business aimed at avoiding receivership.

"But given the current circumstances we welcome any party who may have an interest in acquiring the business or any of its assets to make early contact with us."

Clift Graham, ECG Group managing director, said the announcement was "a source of very deep regret for all those associated with ECG".

He added: "Our priority at this time is to offer support to our staff and it is our earnest hope that our highly skilled and committed workforce will soon be absorbed within an industry sector that is currently limited by a shortage of such experienced personnel."