Flotation Technologies, a manufacturer of buoyancy devices for offshore drilling and marine-related companies, will be closing by year’s end and laying off 40 employees.

The company, founded in Biddeford in 1979, cited “overcapacity in the marketplace” and price reductions by competitors Trelleborg in Europe and Balmoral Offshore in Scotland that made it impossible for it to compete, according to a Trade Adjustment Assistance application filed with the U.S. Department of Labor.

The program provides training and job-search help and benefits to workers who have lost their jobs in the wake of increased imports or shifts in production outside the United States. Individual employees must apply to the state labor department to get the services.

Maine’s Department of Labor said its “rapid response” team also has been working with the company since the early fall to help avoid or minimize layoffs, or provide support and training for affected workers.

Flotation Technologies will close Dec. 31, according to the application.

The company was acquired in 2008 by Deep Down Inc. It is currently owned by AFGlobal Corp. of Houston, which has 30 facilities in five countries.