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Job News: Rig Fabrication Job Jeopardy

Posted on 05.02.2004 - 04:31 EST in JOB NEWS by ginamc

Between 100 and 200 jobs could be in jeopardy after an American company decided to pull out of Great Yarmouth.

Varco International, who took over Morinoak International Limited (MIL) in September 2001, have decided to pull the plug on its rig fabrication business because of poor financial results in the operation.

A statement from the Houston based company said: "Varco acquired all of the shares of MIL, based in Great Yarmouth, with a view to expand its sales of drilling equipment by packaging the equipment with rigs fabricated by MIL.

"The company had not previously been engaged in the business of fabricating structural rig components, and stated that its financial results from the strategy have been disappointing for several quarters, which prompted its decision to exit rig fabrication."

Varco expects to see a loss of roughly £9.2m for their last quarter of 2003. The statement continues: "The MIL operating loss and impairment charge are expected to be $16.9million pre-tax in the fourth quarter."

Jim Dumolo, Head of Regeneration Services at Great Yarmouth Borough Council, said: "We are still trying to get to the bottom of the reasons why they are leaving, but it does sound like it's for financial reasons.

"The councils response is of considerable concern, but beyond that we are in their hands at the moment."

Varco has operations in 350 locations in over 40 countries.

Source: The Advertiser

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