Dozens of jobs at risk as Walsall firm outsources to global supply chain

Aldridge-based Maloney Metalcraft, which has 78 staff, was rescued by Avingtrans in 2013 when the engineering group bought the business for a token £1.

Avingtrans, which makes critical components for the aerospace, energy and medical sectors, said the closure and sale of the site in Westgate was already in progress in a move that would lower costs and improve logistics.

Bosses said the steep decline in oil price and the resulting delays in a number of project decisions had presented the group with the need to implement an accelerated cost reduction program across the energy and medical division.

It comes despite the group reporting record sales for the year to the end of May, with revenue increasing by 33 per cent to £60.3 million.

The Westgate-based factory designs, fabricates and installs products for the global oil and gas market, including equipment solutions for petroleum production, gas processing, produced water treatment and aftermarket parts and services.

Austen Adams, managing director of the energy and medical division of Avingtrans, said it was regrettable that jobs would be affected but the decision would allow the company to grow in the future.

He said 41 staff could be made redundant in various phases between January and June next year, but would be redeployed wherever possible.

He added: "We are in the middle of a consultation. The balance of employees we are looking to relocate very locally."

The remaining workers at the site would be moved to a new office to take up jobs in areas such as design, administration and project management.

The new site is yet to be established but Mr Adams said it was hoped it would be in the local vicinity.

Manufacturing will be transitioned to an outsourced global supply chain and supported by the larger Metalcraft facility in Chatteris, where around 110 staff are based.

The group is also restructuring its aerospace operations.