Belmar Engineering has gone into liquidation with the loss of all 48 jobs at the Torry firm.
The engineering business, which was established in 1975, blamed the closure on increased international competition, losses in recent years, and falling orders.
Liquidators MHA said efforts to sell the business - which produced components for subsea systems - had been unsuccessful.
Staff were informed of the situation at a meeting on Tuesday.
A letter was also sent to all known creditors - about 80 in total - whom the BBC say may be owed several million pounds.
The final amount they will receive will not be known until assets are sold, claims reviewed, and debt documentation analysed.
Michael Reid, of MHA, said: "The decision to close was taken as the final option.
"I will ensure that all employees are fully advised about the process for claiming their employment entitlements, including unpaid pay, pension deductions, accrued holiday pay, notice pay and redundancy."