Up to 600 jobs are under threat as an oil and gas engineering firm considers closing its manufacturing operation in Leeds.
OneSubsea said the “most severe downturn of the past 30 years” in the sector has left many of its plants “underutilised”.
The company employs more than 900 people in Leeds and the proposal to close its manufacturing, assembly and testing facilities would mean the loss of around 600 of these.
Its engineering, project management and tendering operations in Leeds, however, would not be affected.
In a statement, OneSubsea said: “The industry is going through the most severe downturn of the past 30 years. This scenario has dramatically impacted OneSubsea order intake.”
The firm added: “We understand the impact of this announcement on our employees and the local community.”