| 12 January 2011 | |
Ideal Standard to slash UK workforce by 20% |
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Ideal Standard International has blamed 'worsening market conditions' for the move which will also see two factories in France close in an attempt to consolidate manufacturing and costs.
The proposed Middlewich closure will spell the loss of 249 jobs, 20% of Ideal Standards UK employees. It will now consult with unions and works councils to go through the proposals in detail.
Production will remain in Hull, Rugely and Otely and the Development and Industrialisation centre located in Middlewich will relocate to Rugeley.
This is another major blow to the UK bathroom manufacturing industry following last summer's announcement from Twyford that it was closing its Alsager sanitaryware factory in Stoke-on-Trent and Jacuzzi UK's plans to cut 15% of its workforce.
"This is extremely difficult news for everyone, employees and local communities alike," Ideal Standard said in a statement. "Ideal Standard UK will do all it can to ease the transition for everyone involved and will, with immediate effect initiate and comply with the legal consultation process.
"The company and its management do not take these kinds of decisions lightly, especially when it affects the livelihood of its employees. However, the company believes that this is a necessary step to regain efficiency and to safeguard the company's current position and future prospects in the ceramics industry across Europe."
In France, 148 jobs will be lost in Revin and 163 in the ironically named town of Dole.
A year ago the company introduced a strategy at the Middlewich plant that involved cutting working hours by 30% in an attempt to continue production but now, the company says, it is one of the most under-utilised factories in the Group and its costs are among the least competitive.
When Ideal Standard's previous owner American Standard sold the company to private investment company Bain Capital in the summer of 2007 it immediately announced the closure of its Excelsior ceramic plant in Stoke-on-Trent with the loss of 140 jobs. It said then that production would move to Rugeley and Middlewich where it had 'invested heavily'.
But since 2008 the Europe-wide company has implemented a series of measures including factory closures and cost management programmes as well as temporary unemployment and production shutdowns but, it says, given the decrease in sales volumes and subsequent rising overcapacity in its ceramic manufacturing plants these measures are proving 'insufficient in enabling [the] ceramics business to maintain a sustainable recovery in Europe."
The company quotes figures from BRG that show the European sanitaryware market decreased in volume by 23% between 2007 and 2010 and the UK sector by nearly 31%. Ideal Standard International insists, however, that the UK is still a viable market and has no plans to pull out entirely.
"The UK continues to be a core market for Ideal Standard International and the company remains committed to maintaining a strong presence there," the statement said. "The group will develop its business by investing in new products to serve the markets, strengthening customer service and continuing to build market competitiveness."




