Tanfield stops US production as demand for platforms falls

Oct 28 2008 by Andrew Mernin, The Journal

MANUFACTURING group Tanfield temporarily stopped production at its American subsidiary yesterday as it reacted to falling demand for its products in the US.

The Washington firm has this week closed the doors to Snorkel International – the aerial platform manufacturer it acquired for £49.9m in June last year.

The plant, which employs around 350 people, will remain closed until next week as the company looks to bring production capacity in line with current market demand.

When the group first took over Snorkel it created 100 new jobs at the US plant but has since reportedly laid off 100 production workers at the factory, bringing staff numbers back down to 350. A Tanfield spokesperson said the company would continue to conduct other non-production business during the shutdown and partly blamed the US election battle for challenging times in the sector.

He said: “The aerial work platform industry continues to face some significant challenges, including the chaotic financial markets, a significant downturn in the construction sector, combined with uncertainty caused by the US election process. These factors impacting at a time coinciding with the quietest season in the US AWP calendar.

“We are therefore taking appropriate action now, to proactively safeguard our business in the face of these adverse conditions – while ensuring we maintain the capacity, capability and skills to deliver the future success of Snorkel International in the years to come.

“This temporary shut-down only affects production and will not have an impact on Snorkel customers – it will be business as usual for our customer care team and sales force during this period.”

It remains to be seen how a fall in demand in the US will affect Tanfield’s UK operations which employ 600 people.

Earlier this month the firm recorded a 150% climb in turnover for the first half of the year despite difficult trading conditions which have seen it lay off around 100 workers in recent months.