New plastics factory owners are looking to shed 100 jobs
Apr 3 2008 by Chris Knox, The Journal
THE new owners of collapsed North Tyneside plastics manufacturer Jaycare could axe up to 100 jobs as part of its restructuring plans.
Portsmouth-based Cope Allman has confirmed that it will be announcing cuts of between 20 and 99 jobs by April 17 after rescuing Jaycare from administration in March.
With 200 staff currently at the site, the cuts could see almost half of Jaycare’s workforce losing their jobs, despite previous reassurances from the new owners that the vast majority would be protected.
Peter Darlington, director of operations at the newly-named Cope Allman Jaycare, said: “We are still very much in the consultation stage and any concrete numbers have yet to be decided upon. However, I would say that job losses will not be below 20 and will be no more than 99.”
Mr Darlington said that Cope Allman had yet to transfer any contracts from North Tyneside to Portsmouth, but admitted that this could happen in the near future.
He did say that one of Jaycare’s printing machines had been taken to Portsmouth following the decision to close two of its three factories, but said that this had been left unused for some time.
Jaycare, which has manufactured drugs packaging for 17 years, was put into administration in mid-January after losing one of its major contracts.
It had previously been struggling with increased polymer, energy and transport costs and was forced to make 24 redundancies just before Christmas.
The firm, which until recent years had an annual turnover of about £18m, saw its profits peak at £4.9m in the year to April 2004, then plummet to £2.3m in 2005 before going £426,000 into the red in the 12 months to April 2006, which is the last year for which its accounts are available.
Alan Hall, director of manufacturing body EEF Northern, said: “Obviously it’s a great shame for the region and the individuals involved.
“However, you have to look at the positives – the fact that at least some of its facilities have been saved and that the new owners are looking to make a success of the business.”
Click on the links below to read previous Jaycare stories:
January 2008: Fears for 200 jobs at firm in administration
March 2008: Jobs may be lost as Cope Allman buys up Jaycare
March 2008: jaycare owners to close factories
