230 jobs could go as Renold plans to close chain plant
Renold has started discussions with its workforce over the proposed closure of its chain factory in Bredbury, Manchester, with the possible loss of 230 jobs.
Renold says that a strategic review has shown that the company has excess capacity in its chain manufacturing operations and that the Bredbury site is not economically viable.
Renold says that, in recent years, the Bredbury plant has suffered from reduced levels of activity and has incurred significant financial losses.
In the year to March 2013, European revenue in Renold’s chain division fell by £6.5m (11%). The financial results for the year included the impairment of £9.4m of assets related to excess capacity in the chain-making operations.
“We know that this will be a period of uncertainty for our staff at Bredbury and we are committed to consulting fully with our employees and their representatives,” says Robert Purcell, who was appointed Renold’s chief executive earlier this year. “We do however have a pressing need to reduce our cost base if the Group is to realise its future potential.”
Renold Chain has other manufacturing sites in Germany, the US, India, China and Australia. In the year to March 2013, the division produced an operating profit of £6.9m on revenue of £141.9m – about 75% of the group’s total revenues, and 8% lower than the figure for 2012. At the end of March it had 1,716 employees worldwide.
