Jobs lost as food and drink engineers Foodmek 'ceases trading' after 52 years in Tayport

A food and drink engineering company that has operated in Fife for more than five decades has ceased trading.

Foodmek Ltd has supplied equipment to some of the biggest names in food manufacturing in the UK and abroad since 1971, including Rowse Honey.

But the Tayport-based firm announced on Tuesday that it had applied to the court to appoint a liquidator.

Foodmek said 32 people’s jobs were affected with insolvency specialist Shona Campbell of Henderson Loggie to be appointed.

It comes after the company experienced a “significant slowdown” in its order pipeline, despite operating profitably during the Covid pandemic by fulfilling contracts for the pharmaceuticals industry.

“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,” said Foodmek managing director Scot Kelly.

“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.”

Ms 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.”