Feb 19 2004
Hydro Aluminium Extrusion UK will close its extrusion manufacturing facility in Sanquhar, Scotland, as a result of significant overcapacities in the UK market segment.
An agreement on the closure has now been reached with the employees and the redundancy package has been accepted. The agreement has been reached within a significantly shorter timescale than the legal maximum.
"This measure reflects the ongoing need to adapt to changing market conditions in order to safeguard our business for the future," says Jean-Claude Raimondi, president of Hydro Aluminium Extrusion.
The closure results from a particularly difficult period for all UK based extruders which has seen the number of working presses in the UK falling from 49 to 33 over the past 10 years. Other extrusion companies have already gone through a series of plant closures. The background is an economic climate for the UK manufacturing base which has seen manufacturing employment fall to a record low level.
Work will now start on liaising with customers on how the transfer of volume will take place to Hydro's two other extrusion sites in the UK (Bedwas and Birtley) by August 1 2004. Priority will be given to mitigating the impact on Sanquhar's 76 employees – offering relocation to other Hydro sites whereever practical and working with local organisations to offer re-employment and retraining support for those people unable to move with the company.
In addition to the extrusion plants in Bedwas, South Wales and Birtley, County Durham, Hydro Aluminium operates a fabrication facility in Warwick and a die manufacturing plant in Gloucester. Hydro is the leading European supplier of aluminium extrusions.
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