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Electrolux plant to lose 500 jobs | Electrolux plant to lose 500 jobs |
(9 minutes later) | |
A cooker factory in County Durham is to close with the loss of 500 jobs, it has been confirmed. | A cooker factory in County Durham is to close with the loss of 500 jobs, it has been confirmed. |
Production at the Electrolux site in Spennymoor, a major employer in the town, will be moved to Poland. | Production at the Electrolux site in Spennymoor, a major employer in the town, will be moved to Poland. |
The plant has been making a loss for the past few years and is too uncompetitive, said the company. | |
It is the worst possible outcome for workers, who had hoped that up to 300 jobs could be saved following meetings with management earlier this week. | It is the worst possible outcome for workers, who had hoped that up to 300 jobs could be saved following meetings with management earlier this week. |
There is a lot to take in for families and this is the worst possible Christmas present Jeff Morland, Unite | There is a lot to take in for families and this is the worst possible Christmas present Jeff Morland, Unite |
Speaking after the announcement, Jeff Morland, North East divisional officer for the Unite union, said: "I'm standing in the canteen with a lot of our members and obviously there is a lot of disappointment, fear and some anger. | Speaking after the announcement, Jeff Morland, North East divisional officer for the Unite union, said: "I'm standing in the canteen with a lot of our members and obviously there is a lot of disappointment, fear and some anger. |
"It could not have happened at a worse time and I think there will be the ghost of a few Christmases past rattling around here over the weekend. | "It could not have happened at a worse time and I think there will be the ghost of a few Christmases past rattling around here over the weekend. |
"There is a lot to take in for families and this is the worst possible Christmas present." | "There is a lot to take in for families and this is the worst possible Christmas present." |
Mr Morland called on the government to do more to protect British manufacturing. | Mr Morland called on the government to do more to protect British manufacturing. |
In June 2005, Electrolux invested £7m in a new line of cookers at the Spennymoor site. | In June 2005, Electrolux invested £7m in a new line of cookers at the Spennymoor site. |
But intense worldwide competition has prompted an urgent review of its operations, according to the firm. | But intense worldwide competition has prompted an urgent review of its operations, according to the firm. |
'Improve competitiveness' | 'Improve competitiveness' |
A company spokesman said: "Following a thorough investigation about the future viability of production at the factory in Spennymoor, Electrolux has decided to discontinue production at the plant. | A company spokesman said: "Following a thorough investigation about the future viability of production at the factory in Spennymoor, Electrolux has decided to discontinue production at the plant. |
"To improve competitiveness some production will be phased out altogether while some production will be moved to the Electrolux plant in Poland." | "To improve competitiveness some production will be phased out altogether while some production will be moved to the Electrolux plant in Poland." |
In 2005, regional development agency One NorthEast agreed to plough £1.6m into the plant, in an effort to retain manufacturing jobs in County Durham. | In 2005, regional development agency One NorthEast agreed to plough £1.6m into the plant, in an effort to retain manufacturing jobs in County Durham. |
An associated warehouse, employing 40 people, is not affected. | An associated warehouse, employing 40 people, is not affected. |
No exact date has been set for the closure of the plant, thought to be towards the end of 2008. | No exact date has been set for the closure of the plant, thought to be towards the end of 2008. |