An engineering firm has announced dozens of jobs are at risk because of ‘severe difficulties’ brought on by the Covid-19 pandemic.

Gilbert Gilkes & Gordon Ltd in Kendal has revealed expected job losses of up to 20 per cent of its workforce, which equates to between 35 and 40 jobs.

The 168-year-old company employs 200 people at its base at Canal Head, including some 12 apprentices.

Gilkes exports hydropower turbines to more than 80 countries, as well as supplying a range of pumps for cooling diesel engines to many of the world’s major diesel engine manufacturers.

The company officially announced a restructuring of its Kendal-based operations yesterday, brought on as a result of ‘severe difficulty accessing overseas markets’.

A spokesman for Gilbert Gilkes & Gordon Ltd said: “The company is entering consultation with its employees to mitigate potential job losses which are expected to equate to up to 20 per cent of the workforce.

“The company confirmed that all business streams will be continuing, with those suffering from adverse market conditions being scaled down to enable focus on strategic growth areas.”

Chairman Charles Crewdson said the decision has been taken with a ‘heavy heart’ but is ‘crucial’ for long-term success.

He said: “The business has suffered from not being able to access its overseas markets for the last year because of Covid restrictions.

“This follows a reduction in orders following the closure of the Feed in Tariff by the Government in the UK.

“The company can see areas for growth in the future but needs to reduce its costs base in this uncertain time.

“Gilkes has a reputation for developing apprentices and sponsoring individuals through university.

“This has been a decision taken with a heavy heart but is crucial for the long-term success of the company.”

Councillor Giles Archibald, leader of South Lakeland District Council, said the council will be organising discussions with Gilkes as a ‘matter of urgency’.

He said: “Gilkes has a long association with Kendal and this is very sad news.

"At this immediate moment, I am particularly concerned for those workers and their families who will be facing uncertainty as a result of this announcement.

“We as a council will be doing all that we can to understand the impacts of this decision on the workforce and the local economy and will be looking to discuss the situation with the company as a matter of urgency.”

Tim Farron, South Lakes MP, said: “This is really sad news and my thoughts are with those who have lost their jobs and their families.

“The Covid-19 pandemic has had a devastating impact on jobs and businesses, and so this will be another big blow to the local community in Kendal.

“As we work towards our carbon neutral targets, we need to see more investment in renewable jobs, not less, so I’m determined to work with Gilkes to help them reinvest back in the area and create new jobs for the future.

“Gilkes have a proud history and I’m determined to work with them to make sure of a proud future.”