Jobs go as Tanfield fights the recession

Feb 9 2009 by Graeme King, The Journal

In a trading update yesterday the company said: “We have already downsized the European-based Powered Access and Zero Emission Vehicle divisions to accommodate a lower run rate. We will review this closely and regularly, and if necessary, take further steps, which may include the implementation of shorter working week practices.”

However Tanfield also sounded a more optimistic note on its overall finance, saying the business was debt- free and the cuts it was making should position the business to survive the recession where its rivals might flounder.

The company said its position at the end of 2008 was to log revenues of £146.5m and cash position of £11.1m which has since improved to £13.1m.

The company added: “Trading conditions in all of our markets remain challenging, with little visibility and reduced order intake.

“The swift and decisive steps taken last year to downsize the business have substantially mitigated the risk of overexposure. Because of this prompt action, we can maintain the business at a much lower break-even level than historically was the case.”

Despite announcing its SEV US joint venture, Tanfield said market conditions in the US were particularly challenging and the company was instigating temporary production suspensions in its existing North American operations, to match output to demand.