150 axed as glass firm closes Durham factory
May 20 2009 By Andrew Mernin, The Journal
MORE than 150 workers at a North East factory were yesterday told by its German owners that the operation would shut and they would lose their jobs.
The multinational corporation Schott Industrial Glass has been reviewing the viability of the Newton Aycliffe, County Durham, site since February and last night said that the global recession and the closure of a number of major customers in the UK meant it was no longer profitable.
Michael Schuhmann, executive vice president of Schott Flat Glass, said: "Although the workforce has worked extremely hard with management to find a way forward for the operation, the achievements were unfortunately not enough to secure the viability of the plant, which will cease operations towards the end of 2009."
The factory, which employed more than 300 staff just a few years ago, had been trying to cut costs since 2007.
Mr Schuhmann added: "Despite significant cost cutting measures over the past 18 months including numerous job reductions, the home appliance business in Newton Aycliffe has been generating significant losses.
"We deeply regret that this decision has had to be made. Due to the future perspectives in the UK market: further sales decline in the British home appliance market, smaller turnover level and no chance of recovering soon, continuing to manufacture in the UK would endanger the long term profitability of the Scott Flat Glass business as a whole."
