125 jobs saved in quartz product plant takeover

Oct 20 2008 by Peter McCusker, The Journal

THE jobs of 125 workers have been saved after the bulk of their Tyneside factory was sold to a multinational but 23 jobs face the axe in one department which is not wanted by the new owners.

The French-owned Saint-Gobain Crystals plant in Wallsend, which makes quartz products for the semi-conductor industry has been sold to a German company for an undisclosed sum.

But the part of the plant which manufactures bespoke industrial testing products is not part of the deal and looks like being closed down.

A spokesman for Saint-Gobain: “We can confirm that an agreement has been reached with Heraeus Quarzglas for the sale of manufacturing operations in Wallsend in the UK, together with operations in the USA, Japan and Korea.

“Saint-Gobain Crystals has also considered a number of options for the other product lines of its Wallsend business.

“However, in light of a combination of difficult market conditions and very mature markets, which are not expected to improve in the foreseeable future, it has concluded that there is no alternative but to close the business. Regretfully, this will result in 23 redundancies.

“Consultation with affected employees is under way, and every effort is being made to find alternative employment opportunities, including the use of outplacement services.”

Christopher Preston, regional organiser for the GMB union, said: “We met with the new owners at the end of last week. This takeover is good news for most of the workforce and hopefully the company will invest in its long-term future.

“It will be our job to try to convince the new owners to employ the 23 staff whose jobs are at risk.”

Heraeus Quarzglas is the world’s largest quartz producer and has been in operation for over 100 years. No one from the company was available for comment.

Saint-Gobain Quartz operates in 54 countries with a workforce of 200,000, including 20,000 in the UK and Ireland.

It is listed on six European stock markets and its portfolio of companies in the UK include Jewson, Graham, British Gypsum, Solaglas, Artex and International Timber.