A Scottish engineer that supplied key Covid-19 equipment during the pandemic has ceased trading.

The directors of Tayport-based Foodmek Ltd applied to court to appoint insolvency specialist Shona Campbell of Henderson Loggie as liquidator.

The liquidator said closure of the 52-year-old firm affects 32 jobs.

Foodmek was set up to supply processing equipment for the food and drink industry and has been supplying some of the biggest names in food manufacturing in the UK and abroad.

During the pandemic, the company continued operating profitably by fulfilling contracts for the pharmaceuticals industry. However, since then the company has experienced "a significant slowdown in its order pipeline".

Scot Kelly, Foodmek managing director, said: "We manufacture capital equipment and have been very busy quoting for new contracts, but unfortunately decisions have been deferred or projects cancelled due to economic uncertainty, caused by the war in the Ukraine and spiraling energy costs.

"When cash is tight, companies pull back on capital expenditure.

"We have explored every option to continue trading but despite excellent support from our bank and from Scottish Enterprise we do not have the cash to trade through this downturn.

"This is a sad day for us. Foodmek has been a good employer in the Tayport area for generations, bringing many apprentices through training and we will always be grateful to our staff."

Shona Campbell, insolvency partner at Henderson Loggie, said: "The directors have been trying very hard to overcome the challenges to continue the business, but regrettably it has not been possible.

"My aim now is to ensure the smooth closure of the business as quickly and efficiently as possible. Any parties interested in the business and assets should contact me.

"Employees have been informed and will receive all the necessary guidance and support to ensure they receive their full employment entitlements."


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