Consolidation plans put north-east jobs at risk at Baker Hughes, GE

A major oil service company is preparing to launch a consultation over job losses in Aberdeen and Montrose.

Baker Hughes, a GE company (BHGE) is understood to have notified workers about its plans today.

Dozens of staff members are expected to lose their jobs at the end of the consultation process, which will begin soon and last a number of weeks.

The decision is related to the firm’s plans to consolidate manufacturing and service operations at its bases in the region.

Under the proposals, BHGE’s operations at its Broadfold Road site in Bridge of Don would be moved to Montrose to create a “centre of excellence”.

A new centre of excellence would also be established in Inverurie.

A spokesman for BHGE said the proposals were not made lightly, but were necessary for the long-term health of the business.

He also said the company’s investment in the centres would be “significant”.

BHGE launched in July following a multi-billion pound merger between US firms GE Oil & Gas and Baker Hughes.

The company has hundreds of staff members in the north-east of Scotland.

BHGE’s spokesman said: “We announced a proposal to create two new centres of excellence in the north-east of Scotland by consolidating manufacturing and service operations currently carried out at its three facilities in the region.

“If the proposal is confirmed, operations would cease at Broadfold Road in Aberdeen and move to BHGE’s existing facilities at Charleton Road and Brent Avenue in Montrose, creating a new centre of excellence for the manufacture of state-of-the-art subsea production equipment.

“This proposal would include some workforce reductions and is subject to a consultation process.

“The second centre of excellence would be established at BHGE’s existing facility at Inverurie, and would be dedicated to the service and repair of oilfield equipment.

“These moves represent a significant investment in BHGE’s operations in the region.”

He added: “We don’t make these proposals lightly, but consider action to be necessary for the long-term health of the business, to position the company for future growth and to better meet the needs of our customers.”

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