Tanfield jobs axe is lighter than feared

Aug 14 2008 by Graeme King, The Journal

MANUFACTURER Tanfield Group has confirmed 85 job losses from its operations in Washington as the company’s root- and-branch review hits home.

The electric vehicle maker announced last month that it was seeking redundancies and the company’s spokesman said yesterday that originally the figure sought had been a much more severe 142 from a total workforce of 440.

Now the company has gone through a month-long consultation period and found it does not need to make as many cuts as first feared.

It operates two main businesses from Washington – Smith Electric Vehicles and Upright Powered Access.

Tanfield said it had made redundancies from across the site and from all grades of staff.

The group has been through a turbulent period in its history recently with supplier problems hitting production at its Vigo Centre factory next to the A1(M) and criticism from City analysts over its corporate governance.

The company has fallen from a great height, having been worth as much as £700m last year to less than £40m as its share price plunged.

Last month its house broker St Helens Capital said Tanfield’s pre-tax profit in 2008 was expected to fall a fifth to £14m from £17.7m. It had previously forecast earnings of £43.4m.

Customer demand at the powered access division has been hurt by worsening economic conditions and the electric vehicles division, popular through the global rise in fuel prices, has seen production slow because of supply chain problems.

Chairman Roy Stanley has returned to take day-to-day charge of Tanfield Group, and has bought around eight million shares in the group to demonstrate his faith in the company.

Chief executive Darren Kell has purchased around one million shares.

A statement from Tanfield last night said: “The HR1 forms issued in July outlined a maximum of 142 redundancies at Vigo Centre.

“Following the consultation period, we have reduced our workforce by 85 people. While this is clearly very unfortunate for those affected, it is considerably fewer than anticipated.”

Tanfield shares closed trading yesterday at 9.57p, down more than 6%.