Renold closure plan threatens 200 jobs

INDUSTRIAL chain manufacturer Renold is planning to close its plant in Stockport putting 231 jobs at risk.

The stock market listed group, which has its headquarters in Wythenshawe, said the site was not viable and has been loss-making in recent years.

Renold trades internationally and has seen week demand in Europe dent sales.

Its performance in the Americas and Asia has been stronger but it posted a £7.7m bottom-line loss in May and wrote off £9.4m due to excess capacity.

It is now trying to cut its cloth accordingly and the decision on the facility at Bedbury in Stockport follows a review of the business by new chief executive Robert Purcell.

In a statement it said: “In recent years, the Bredbury plant in Manchester has experienced much lower activity levels and incurred significant financial losses.

“As a result, the analysis has concluded that the Bredbury plant is not economically viable. The company therefore will initiate today a formal process with employee representatives to consult on a proposal to close the site.”
 
Mr Purcell said: “We know that this will be a period of uncertainty for our staff at Bredbury and we are committed to consulting fully with our employees and their representatives. We do however have a pressing need to reduce our cost base if the group is to realise its future potential.”

The group’s shares are trading at 28p, giving it a market value of £62m.