A gas turbine company based in the Lincoln village of Witham St Hughs is winding down after appointing administrators, resulting in job losses for 39 employees.
Turbine Efficiency was established in 2000 and operates from a leasehold facility at Energy House on Electric Avenue in Witham St Hughs.
James Clark and Howard Smith from Interpath Advisory were appointed joint administrators of Turbine Efficiency Limited (TEL) and Turbine Efficiency Group (TEG) on November 16, 2021. On appointment, the companies (TEL & TEG) had 39 employees.
Seventeen of the employees were retained to finish outstanding items of work in progress, assist with asset realisations and the wind down of the business. The remaining 22 employees were made redundant upon appointment of administrators.
TEL operated as a specialist provider of maintenance, repair and overhaul services for industrial gas turbines in the utilities, oil and gas, power generation, and industrial process support sectors. TEG was incorporated in December 2011 and operated as an intermediate holding company, and was the 100% shareholder of TEL.
TEL suffered significant capital constraints in the financial year 2020/21. This was as a result of customers reducing capital expenditure projects after the impact of the coronavirus pandemic.
The directors carried out an early options process to try to secure new investment for the business. Unfortunately, with no deliverable offers for the business and assets forthcoming, the directors took the difficult decision to place the companies into administration.
James Clark, managing director at Interpath and joint administrator, said: “As we commence an orderly wind-down of the business, our immediate priority is to provide those employees impacted by redundancy with the support and assistance they need to make their claims to the Redundancy Payments Office.”