Jobs created as managers buy number of plastic firm’s assets

Feb 3 2009 by Chris Knox, The Journal

A PLASTICS firm has been bought out by its managers after going into administration and axing its workforce as it was hit by the downturn in the motor industry.

All 54 staff at Durham-based Hillside Plastics Limited were made redundant after the firm got into difficulties after suffering a significant decline in orders since the onset of the recession.

The firm’s main work was as an indirect supplier to vehicle-makers companies including Honda, Nissan and Toyota – which have all scaled down their production – as well as clients in the domestic appliances market.

However, the management team believe they can make it through the recession after buying out a number of the firm’s assets as part of newly formed company JKL Mouldings Limited, which will trade from the same site on Meadowfield Industrial Estate and will employ 27 former staff from Hillside.

A spokesperson for JKL said: “It is with great regret that we have had to lose some of our staff as a result of the changes, but considering the impact that the downturn in the motor industry has had on our operations, the situation could have been much worse. The emphasis now is on surviving, which is the situation for many businesses at the moment.”

The firm specialises in injection mouldings and operates from a 35,000sq ft factory, which includes 25 moulding machines, many of which will be sold on by Stockton-based administrators Ferguson & Co as part of it talks with creditors.

The job losses form part of a grim picture for the region’s motor industry suppliers, who have been hit by the severe decline in car sales as people continue to tighten their belts.

Stockton-based Nifco UK, which supplies everything from door handles to bumper brackets for clients including Nissan, Ford and Toyota, has in recent years slashed its staff from 650 to 220 in an attempt to get back in the black.

The slowdown also led to 160 jobs being axed at Newton Aycliffe-based parts supplier ThyssenKrupp Tallent in December, while Sunderland-based Unipres this year announced plans to axe 96 full-time jobs on top of the 200 temporary staff they have already lost.

A spokesperson for the administrators Ferguson & Co said: “Everyone knows how difficult it has been recently in the motor industry, with the likes of Nissan massively affected.

“With this in mind, it must be seen as positive that the management team have opened up 27 positions for ex Hillside staff and are now looking to the future with JKL Mouldings.”