Jobs will go at engineering firm

Orders from a major customer did not materialise

A Dundee engineering company is heading for administration after orders from a significant customer fell through.

The 150 people employed at Texol Technical Solutions have been told the number of employees will be "significantly reduced."

The firm carries out electronics work, metal fabrication and develops gas generators.

The company is also behind the famous Midgeater, which kills midges and has been used as far away as Norway.

A statement from the firm said: "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.

The board has my full support in their ongoing negotiations and I hope that a phoenix might yet rise from the ashes Stewart Hosie Dundee East MP

"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.

"The last year had been profitable for the company, and 2008 would also have seen reasonable returns, with turnover anticipated to remain at a constant level, and an extended and improved banking facility in place.

"However, with the sudden and unexpected loss of revenue from this key global customer, the board was of the opinion that ongoing normal trading was impossible."

'Extremely disappointing'

The business, which is based at Myrekirk Road, was formed in 1998 as a management/employee-owned company.

The firm is also the sponsor of the Dundee Texol Stars ice hockey team.

Stewart Hosie, Dundee East SNP MP, said: "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 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."