159 jobs go as Watson Norie looks for buyer

Sep 30 2008 by Chris Knox, The Journal

MORE than 159 North East workers have been axed at troubled electrical engineering firm Watson Norie, which is desperately searching for a prospective buyer.

The 88-year-old Newcastle firm called in administrators PricewaterhouseCoopers (PwC) last week who yesterday revealed the firm had slashed its 500-strong workforce by 400.

Watson Norie had been struggling to secure additional funding to help it continue with a series of outstanding contracts.

Although PwC were not available yesterday to confirm how many jobs had been lost at the firm’s headquarters in Walker, union Unite has said that 159 of its members had been in contact since being made redundant and that they expect a significantly more to come forward over the next few days.

A large amount of the company’s problems follow delays in payment by one of its principal customers for two major contracts worth a total of £9m.

However, company accounts show that the firm has been facing difficulties for some time, with its profits nose diving from £783,000 in 2003 to £79,000 in 2007, despite its turnover hovering above £28m over the period.

The firm had been in rescue talks with Middlesbrough engineering firm Hertel before announcing its administration, only for the Teesside outfit to pull out before a deal had been struck.

Unite has said that Watson Norie is now reportedly in talks with London-based engineering giant Balfour Beatty and that it is still hoping to find a buyer.

TUC regional secretary Kevin Rowan said: “The next 48 hours are going to be critical if this historic company is to survive.”