Aug 17 2006
Hydro Aluminium Extrusion UK Ltd is proposing to close the Redditch fabrication facility and complete the transfer of the site's production volumes to Bedwas by the end of this year. In addition the company intends to adjust its press capacity utilization by closing the P16 press in Bedwas by March 2007. Volumes from the closed press are planned to be taken over by the remaining extrusion press at Bedwas and by Hydro's Birtley plant.
"We realize how difficult these proposed closures will be for those employees affected and their families, however, by carrying out these actions, we believe we can achieve profit levels that provide a sustainable platform for the future," says Hartwin Hagen, Managing Director of Hydro Aluminium Extrusion UK.
The company currently has 380 employees across four sites in the UK: Bedwas, Birtley, Gloucester and Redditch. Through a combination of job transfers, voluntary redundancies and reductions in the number of temporary workers Hydro is hopeful that the number of full-time job losses will be kept to a minimum. Current estimates are around 40 positions.
Hagen points out that several similar announcements have been made recently by domestic competitors, including the shutdown of plants and closure of extrusion presses. He says that the increasing amount of imported volumes has led to a severe overcapacity in the UK market.
"The amount of imported volume has gone up by nearly a third over the past several years and as a result, capacity utilization in the UK market is only about 60 percent," he says. "We do not believe there will be enough market demand going forward to consistently fill all of our four presses to a level of full utilization and to generate sufficient profitability."
A 30-day consultation period will begin today with union and employees' representatives on these proposals. Should the intention to close proceed, Hydro will give priority to mitigating the impact on employees, offering alternative jobs wherever practical and keeping employees abreast of developments at every stage of the process.