North loses 500 jobs – 300 more could go

Dec 13 2007 by Andrew Mernin, The Journal

A BLACK day in the region’s manufacturing sector yesterday saw confirmation that over 500 jobs would be axed at two North-East plants, with the fate of a further 300 jobs due to be sealed tomorrow.

Hartlepool-based Stadium Plastics, which employs over 300 people, announced it will close in January, having failed to find a buyer after falling into receivership in October.

Meanwhile, bosses at the Electrolux cooker factory in Spennymoor, County Durham, confirmed that at least 200 jobs would go.

The factory’s Swedish owners said in October it would conduct a two-month investigation into the future viability of the loss-making site to decide whether to keep it open, cut jobs or close it completely.

However, the company has now decided to either downsize the plant – axing 200 jobs – or close it completely, with the loss of a further 300. The firm, which plans to move its North-East operation to Poland should it close, will discuss the future of the factory today and make a final announcement tomorrow. Amicus union representative Jeff Morland, who has been liaising with Electrolux workers over the past two months, said: “The mood among the staff is one of fear.

“The workforce has been tremendous, they are still hitting their targets and they have put on a really good show, but they are up against cheap labour in Poland. On Friday, the announcement will either be the loss of 200 jobs or the loss of 500 jobs.”

Stadium Plastics, which makes moulded parts mainly for the car industry, fell into receivership two months ago after enduring heavy losses at its Toft Farm Industrial Estate site. Receivers Grant Thornton had been hopeful of finding a buyer. However, joint administrator Joe McLean was forced to deliver the crushing blow to staff yesterday.

He said: “All our efforts to find a buyer have failed. We are now carrying out a managed wind-down leading to end of production.”

According to Mr McLean, Stadium had attracted the interest of 52 potential buyers, with four parties seen as serious contenders. However, their interest dwindled with the last potential investor pulling out this week.

Ian William, director of business and industry at regional development agency One NorthEast, said: “Today’s news is very disappointing as there had been high hopes that the business could be sold as a going concern.The employees and their future employment prospects are now our primary concern.

“Hartlepool Council is leading the public sector response to the closure.

“Public sector specialists will meet with company senior management as soon as possible to put in place a full package of support for every worker. This includes access to new job opportunities, retraining, assistance with starting their own business as well as CV updating and giving benefits advice.”

Remaining upbeat about the situation, manufacturers’ body EEF said the North-East’s manufacturing sector would recover despite the bad news.

EEF Northern director Alan Hall said: “While it’s sad to see these companies going down, there are other companies keeping the sector buoyant and there will be no shortage of takers for the skilled Stadium and Electrolux workers.”

See page two to read more on the history and ultimate downfall of Stadium Plastics.