Staff reassured about role in new markets

Aug 28 2009 by Chris Knox, The Journal

A SPECIALIST electronics manufacturer has assured workers that its factory in Bedlington is safe, following a sharp fall in sales and its decision to close a site in Blyth in 2006.

Global business TT Electronics said turbulence in its core automotives market was mainly responsible for its diminishing sales, with the company reporting a loss before tax of £3.9m – down from a profit of £15m in 2008.

The sales report for the half-year to June 30 also revealed that sales fell 19% to £237m, which the firm said reflected the severe economic downturn.

However, it went as far as saying that it considered its remaining TT Welwyn Components factory in Bedlington a “key part of its operations”, despite axing 30 jobs there between June last year and March.

The factory, which employs 181 people, makes small electronic components for the defence industry and has recently expanded it into other fields, notably the medical sector, where its products are used in defibrillators. The group, which is headquartered in Surrey, has reduced its presence in the North East in recent years. It sold its loss-making AEI Cables business in Birtley, Gateshead, in 2007 and closed its semi- conductor plant in Blyth in 2006 with the loss of 132 jobs.

Despite cutting the workforce from 290 to 180 in recent years, the group says it wants to stay in the North East and will continue to invest in its management and training staff at the site.

TT has cut 1,668 of its 6,000 worldwide staff in the past 18 months as its business, particularly in the automotive sector, has been hit by the slump.

Group chief executive Geraint Anderson said: “These results were affected by the actions taken to restructure the group in order to improve its long-term performance and, in the short term, to realign the cost base with reduced demand resulting from the current recession.

“However, having made the changes and reducing our exposure to the automotive sector, we are now confident of growing into new markets and consider TT Welwyn to be an important part of this.”

In addition to its expansion into the medical field, the group, which has offices in 13 countries, is also planning to set up teams to look at components for the burgeoning hybrid vehicle market.

Mr Anderson said: “Our world-class engineering capability remains core to the business and we continue to increase our focus on the development of components for higher margin, specialist markets.

“While we are beginning to see signs of stability in certain markets, order visibility remains limited.

“With a significantly reduced cost base, customer-focused structure and sound balance sheet, we believe we are well placed to manage the recession and to take advantage of any improvement in our markets.”