Member Article

Stockport jobs at risk as chain works under threat

Manchester manufacturing firm Renold, which makes industrial chains and power transmission equipment, plans to close its plant at Bredbury in Stockport, putting 230 jobs at risk.

The firm, based in nearby Wythenshawe, has issued several profit warnings in recent months. Having conducted a strategic review, it concluded that the Bredbury chain plant is not economically viable.

It has confirmed it is to start a consultation process with employee representatives at the plant.

The company announced in May that it was tackling inefficiencies in the business after reporting revenues for the year to March 31 had fallen from £205m to £190.3m, generating a pre-tax loss of £7.7m, - a dramatic fall from its previous £7.6m profit.

Renold said it would seek to remove excess capacity and install smarter working practices across the group in order to tackle inefficient business practices and lower its break even point. The Bredbury plant has experienced much lower activity levels and incurred significant financial losses.

Since January, the firm has been led by chief executive Robert Purcell and a new management team.

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.”

This was posted in Bdaily's Members' News section by Simon Malia .