Union vows to fight scores of job cuts at Lancashire polymers group
Lancashire polymers group Victrex is reportedly planning to axe 79 jobs at its Clevelys headquarters.
The GMB trade union said staff were informed yesterday (August 13) of the redundancy plans, which it described as a “hammer blow” to North West manufacturing.
The union said the company opened consultations with staff yesterday, with 79 redundancies expected across operations by this October.
GMB said it will “fight tooth and nail” to secure the best possible deal for its members.
Stephen Boden, GMB regional organiser, said: “This is a hammer blow for manufacturing in the North West – and the UK as a whole.
“The decision to restructure manufacturing within the company in this capacity is devastating news for GMB members and their families.
“Members should have no fear that we will work closely with affected members to mitigate compulsory job losses.
“We will fight tooth and nail to secure the best possible deal through the consultation period.”
A Victrex spokesperson said: “Like many companies, Victrex has started to see the impact from COVID-19 in its trading performance.
“Many of our key markets are currently seeing reductions of around 40% in revenue, for example in aerospace, automotive and energy.
“Some economists have predictions of a longer recovery period across aerospace, automotive and energy, for example.
“We, therefore, have to take further action now to remain a viable and sustainable business for the future, in order to support our customers, and to support our profitability in a lower production environment.
“Unfortunately, a weaker trading performance flows through to a fall in required production levels, and with our plan to gradually bring down global stock levels, production is expected to remain low over the next two years.
“Regrettably, this means a proposed reduction in our headcount of around 100 people, including agency workers and contractors.
“Whilst voluntary redundancy is on offer, regrettably, this may include the need for some compulsory redundancies.
“Our front line and production teams will be most affected, plus some support staff. Approximately 78 roles are in the UK and the remainder outside of the UK.”
They added: “Whilst today’s news is regrettable, we want to ensure that we remain a viable and sustainable business both for the short and longer term, and can continue to invest to support our customers over the coming years.”
In its most recent trading update to the market, Victrex revealed that its overall third quarter group sales volumes was down 12% to 805 tonnes, compared with 912 tonnes in the same period in 2019, with group revenue down 18% to £58.8m, compared with £72m a year ago, reflecting mix as a key driver.
On a year-to-date basis, to the end of the third quarter, group sales volume of 2,797 tonnes was broadly in line with the prior year (2,811 tonnes), with year-to-date group revenue of £210.3m down three per cent, compared with £217.8m in 2019.
It said that, following a broadly stable performance in April, the months of May and June started to see the impact of COVID-19-related headwinds, with group volume and revenue being more than 20% lower than the prior year.
Aerospace, automotive and energy end-markets experienced the greatest level of decline, with performance being around 40% lower.
In medical, the anticipated deferral of elective procedures started to impact the business from April, with monthly revenue declines of up to 40% in this division, although market indicators suggest procedure deferral will gradually reverse.
