Jobs in jeopardy as one factory closes and another sheds staff

May 14 2008 by Karen Dent, The Journal

A TOTAL of 74 jobs are under threat after a chemicals business announced plans to close one of its North East sites and cut jobs at the other.

Arizona Chemical, which makes chemicals from pine resins for goods such as adhesives, inks and plastics, has 91 staff at its two plants in Bedlington in Northumberland and Chester-le-Street, County Durham.

The US giant plans to close the Bedlington plant, which employs 43 people, and reduce the number of staff working at Chester-le-Street from 48 to 17. It says the move is needed to ensure it remains competitive in the global marketplace.

A global strategic review carried out by the company recommended that much of the work currently done in the North East should be shifted to two of its factories in the US and France.

UK plant manager David Schofield said: “Our employees have done a remarkable job over the years and this recommendation in no way reflects on their performance.

“Arizona is looking to the future in a very competitive marketplace. It is a strategic proposal to improve the global cost position. The majority of what we work on is for mature markets where cost is critical.

“It is a business consideration driven by economic necessities. Whatever decision is finally made, we will make our best effort to ensure that the recommended process is as easy as possible for local staff.”

The company has started consultations with its staff representatives at Bedlington, which is not unionised, and with the GMB and AEEU unions, which represent workers at the Chester-le-Street plant.

Val Scott, GMB regional organiser, said: “We have to set up a series of meetings. There is a 30-day consultation period, although I believe they will extend this to 90 days to August, when the closure is expected to happen. The union’s immediate priority is to offset any redundancies where possible.”

She said there had been a question mark over the future of the North East factories since the business was bought by venture capital company Rhone Capital last year.

“I think the writing was on the wall then, if the company was not turned around and did not become profitable,” said Ms Scott.

Arizona, which has five manufacturing sites in Europe and five in the US, said it hoped to reduce staff numbers through voluntary redundancies.