UP to 120 workers at an engineering firm are facing redundancy amid “extremely challenging market conditions”.

Doosan Babcock, which operates from a site in Gateshead, will consult with workers over job losses among permanent staff.

The majority of the positions affected are in management and back-office support services.

It is understood the losses will be spread between sites in Scotland, West Sussex and the West Midlands, Selby, North Yorkshire, and the company’s Team Valley base.

It has been estimated up to 60 posts will go in Scotland.

The firm, which employs more than 5,000 people, provides engineering, aftermarket and upgrade services to the power generation, oil and gas, petrochemical and process sectors.

However, Andrew Colquhoun, chief executive, said it is facing a difficult trading environment.

He 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 that places great importance on our staff.

“We will do our utmost to support our colleagues during this unsettling time.”