UP to 120 workers at engineering firm Doosan Babcock could face redundancy as the company deals with “extremely challenging market conditions”.

It will be permanent staff, including many from the main site in Renfrew, who are likely to lose jobs as part of the “reorganisation programme”.

In a press release yesterday, the firm said the majority of the positions affected are in management and back-office support services, and around 60 of the jobs going will come from Scotland.

The company – which employs more than 5000 people – specialises in providing engineering, aftermarket and upgrade services to the power generation, oil and gas, petrochemical and process sectors.

Doosan Babcock chief executive officer Andrew Colquhoun (pictured) said: “Doosan Babcock has shown strong underlying performance in the last 12 months but continues to face extremely challenging market conditions.

“To meet these challenges, ensure a sustainable future for our employees and add value to our customers, we are undertaking this review of our organisational structure.

“Unfortunately this will result in some job losses and this is particularly difficult for a company which places great importance on our staff. We will do our utmost to support our colleagues during this unsettling time.

“Until the consultation period has concluded, it would be inappropriate to provide further comment.”

There had been a political argument over the weekend after Scottish Labour leader Richard Leonard claimed up to 350 workers on contracts in Grangemouth and in Lanarkshire faced losing their jobs.

The company said this was inaccurate, and that those jobs were contract positions coming to an end.

Doosan Babcock said: “The company wishes to clarify the facts surrounding misleading media reports over the past few days relating to 350 redundancies to its workforce at Grangemouth and Levenseat.

“The varied work undertaken by the company involves both routine repair and maintenance which is largely covered by its core workforce and short-term project work, such as the work undertaken at Levenseat and a forthcoming project at Grangemouth, which requires additional skilled individuals to be recruited on a short-term basis. This arrangement is typical of our industry and all parties – the company, the short-term workers and the trade unions – are fully aware of these arrangements.”