450 jobs in danger as modular house building factory set to close

Asset management and pensions giant, Legal & General (L&G), is closing its North Yorkshire modular housebuilding factory, in a move which will put 450 jobs at risk.

Sky News today says it understands the company informed staff at its site in Selby that it intends to halt production there following years of weak demand.

L&G set up the modular housing arm seven years ago, developing the factory with the capacity to construct 3,000 modular homes each year.

In a statement issued to Sky, L&G confirmed it is proposing to cease new modular production at its factory in Selby.

The statement adds: “As a start-up business with a significant fixed cost base, a strong and predictable site pipeline is required to make L&G Modular Homes a successful sustainable business.

“As part of its ambitions to tackling the housing crisis, Legal & General Modular Homes built a large factory to deliver impactful housing volumes, however, with this comes significant running costs making it essential to have a reliable pipeline.

“These factors, coupled with long planning delays in the UK and recent major macro events such as COVID, have meant the business has not been able to secure the necessary scale of pipeline to make the current model work.”

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