Economy alert: ALL staff made redundant after major UK engineering firm falls into administration

A major UK engineering firm has made all of its members of staff redundant as part of its ongoing administration proceedings.

Glacier Energy Manufacturing Limited, an Aberdeen-owned engineering firm, has entered into administration, with every one of its 53 employees losing their positions

The company has been detrimentally impacted by the North Sea oil and gas sector experiencing a significant decline in activity.

The manufacturing business, which formed part of the wider Glacier Group based in Aberdeen, operated facilities in England rather than Scotland.

Its site at Stockton on Tees had previously traded as Francis Brown before Glacier acquired it through a pre-pack administration deal in August 2024.

In a statement, the parent company explained: "Despite significant efforts to turn around the business, due to market challenges and the current fiscal regime, activity levels in the North Sea oil and gas market have been significantly impacted and new energy markets slow to materialise."

MPs and representatives from the energy sector have urged the Labour Government to extend gas licences on the North Sea.

However, Energy Secretary Ed Miliband has been hesitant to do so as his department doubles down on Net Zero policies.

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Earlier this year, Energy & Utilities Alliance (EUA) chief executive Mike Foster argued that extending North Sea gas licences should be a priority for Labour.

He claimed that such a move would better protect workers, lower energy bills, and bring Britain closer to a clean energy future.

Mr Foster said: "A truly progressive energy policy must protect workers during the transition, not leave whole communities behind; just ask former mining communities why this matters."

"This is about managing change responsibly, protecting today’s jobs while investing in tomorrow’s.

"Progressive politics means standing up for workers, managing transitions fairly, and protecting national resilience.

"Extending North Sea gas licences, under strict, conditions, supports all three. It is pragmatic, people‑first, and consistent with accelerating Britain’s clean‑energy future."

Economists warn that Britain is on the verge of a jobs crisis with redundancies reaching their highest level since the Covid-19 pandemic.

Redundancy payouts reached £ 477million in 2025 as the unemployment rate hit 5.2 per cent towards the end of last year.

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