Electrolux jobs axed
Workers at Electrolux in Spennymoor, County Durham have lost their battle to save 500 jobs at the plant.
Electrolux’s decision to close the site - first revealed by The Journal on Thursday this week - comes two months after the Swedish appliances group warned it was considering the future of the loss-making operation.
Production at Spennymoor is expected to continue throughout 2008 before most of its work is consolidated at the company’s existing site in Poland.
Electrolux said today it could not find a way to make the factory competitive, despite “constructive ideas” from employees on improvements and potential cost savings.
Magnus Yngen, head of Electrolux major appliances Europe, said: “I do regret that despite the efforts made by our employees the cost gap is simply too large to bridge.”
The Spennymoor factory manufactures free-standing and built-in cookers for the UK and Irish markets.
Electrolux said competitors had mostly moved their production facilities to countries with a lower cost base, which resulted in it facing increased pressure on prices.
Mr Yngen added: “Today the factory generates a loss. Running such a factory is not sustainable, which is why we have decided to consolidate our UK cooker manufacturing into our factory in Swidnica in Poland.
“Closing a factory is always the last resort and is not something we strive to do. In this specific case, I would like to express my appreciation to the employees of the Spennymoor factory for submitting constructive ideas on improvements and potential cost savings.”
The company recently posted European sales 3% up at £883m (11.6bn Swedish krona) in the third quarter of the year, but operating income slipped 25% to £39m (514 million SEK) and margins also fell.
The company, which employs around 56,000 people worldwide, sells products including refrigerators, dishwashers, washing machines, vacuum cleaners and cookers under the Electrolux brand.
Jeff Morland, North East divisional officer for Unite the 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.
“There is a lot to take in for families and this is the worst possible Christmas present.”
Mr Morland was upset the Government had not done more to protect British manufacturing and to stop jobs leaking abroad.
“We should take a leaf out of the French and Germans’ book and do more to protect our national interest.
“The political will to save British manufacturing is not there.”
Ian Williams, director of business and industry at regional development agency One NorthEast, said: “Today’s closure announcement is a major blow for the workers and for the local economy.
“There has been a manufacturing presence on the Electrolux site for more than 50 years which has supported generations of workers and their families.
“We will now be working with our partners and Electrolux senior management at Spennymoor to give the workforce every possible opportunity to find new employment.”
“One NorthEast worked closely with Electrolux to look at all the options for the Spennymoor plant, but in the fiercely competitive global marketplace the company decided that it is no longer viable.”
