Sandvik set to close Wolverhampton plant despite saying markets are improving

A MACHINE tooling factory near Wolverhampton is set to close with the loss of more than 140 jobs due to declining demand – despite its parent company claiming sector conditions have improved.

Sandvik Machining Solutions will shut the plant in Featherstone by the end of the year and move production abroad. Workers were told of the decision yesterday – although Sandvik said the decision was part of a programme agreed in December.

The factory makes metal-cutting tools for the engineering, aerospace and automotive sectors; industries which the Swedish-owned company claims are not growing in the UK, despite much evidence to the contrary.

In fact the company appears to contradict its own findings in its first quarter update published today.

The report states: “Market demand for Sandvik Machining Solutions increased during the quarter compared with the flat demand situation observed in the second half of 2013. Demand in Europe developed favourably from a low level, particularly in the UK, Germany, France and Italy, with increased activity in the automotive and aerospace segments.”

It adds: “In April, the closure of two additional production units was initiated; tools production in Piacenza, Italy and the inserts production in Featherstone, in the UK. The closures represent part of the multi-year program announced in December 2013 to better align the business area’s production footprint with global demand. To date, the closures of four production units have been initiated and are expected to be finalised in 2015.”

Sandvik said it regretted having to make the decision but the move was necessary to ensure the business remained competitive.

It is now working with the Unite union, which represents many of the workers to try and minimise the impact of the redundancies.

Sandvik also has production operations in Coventry, Halesowen and Stoke-on-Trent.

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