Dundee engineer Galloway collapses with 161 jobs lost

Galloway worked on projects including the Sir Chris Hoy Velodrome in Glasgow. Picture: Jane Barlow
Galloway worked on projects including the Sir Chris Hoy Velodrome in Glasgow. Picture: Jane Barlow
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Galloway Group, the specialist ductwork engineer that worked on Glasgow’s Sir Chris Hoy Velodrome, has collapsed into administration after falling victim to the oil and gas downturn.

Administrators from EY said that 161 workers have been made redundant with immediate effect, with the remaining 33 being kept on to continue trading at the group’s Ductmate subsidiary while a buyer is sought.

A spokeswoman for Galloway said: “In due course, the administrators will decide how best to take matters forward. The business has been under considerable pressure for a number of years. Demand in our traditional construction market has been very weak since 2012 and margins have been significantly reduced.

“In the recent past, the collapse of the oil and gas sector has applied further pressure. This has meant that the business has been loss making and under cash pressure.”

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As well as the Sir Chris Hoy Velodrome, Galloway – which can trace its roots back to 1872 and also has a small sales and design office in Dewsbury, West Yorkshire – has worked on the British Museum in London and the Scottish Parliament in Edinburgh.

The spokeswoman said the firm’s directors, led by managing director Jim Mathieson, had worked “tirelessly” to avoid insolvency through a number of initiatives, including cost cutting, modernising the business and raising finance.

“Efforts to raise finance are significantly impaired because of the high debt burden on the business from both previous borrowings and the final salary pension scheme,” she added.

“This is a very sad day for a long-established Dundee company and our thoughts and best wishes are with the employees and creditors of the business. We will continue to work with EY during the administration process as may be required.”

Joint administrator Andrew Davison said that Galloway and its Ductmate arm had been racking up losses in recent years amid “weak demand” in the construction market, while the fall in the oil price and subsequent pressure on the energy sector had also taken its toll.

“The directors have undertaken a number of initiatives to try and counter these setbacks but unfortunately the pressures of the losses generated by these issues became too great and the directors were left with no option but to place the companies into administration,” he said.

“The redundancies which we have had to make are clearly regrettable. We are doing all that we can to assist these members of staff to make their relevant claims and are providing them with access to impartial advice to help them face the future.”