Member Article

Unexpected downturn in orders leads to redundancies at SONE

County Durham manufacturer SONE says it is “loathe” to let staff go but has been forced to put 46 employees on consultation following a dramatic downturn in work from a major customer.

The Stanley-based plastics specialists made the announcement to staff on Tuesday afternoon, just weeks after securing a major dental products contract as reported on Bdaily.

Chairman and CEO Raymond Oliver said the news was bitterly disappointing given SONE’s recent run of expansion, including a £250k RGF package and investment in injection blow moulding machinery to reach new customers.

A dramatic 50% cut in work from a major customer in the last three months has prompted SONE to take the action.

It is hoped a deal can be reach where some staff may opt to take voluntary redundancy, agree to job share or to work part time.

SONE’s management team has pledged to do everything possible to mitigate the impact of the cuts and will continue to drive ahead with its investment plans.

Mr Oliver said: “This change of policy was totally unexpected. We have a fantastic team here and they have all worked extremely hard to support the development of SONE over the last three years, so it is bitterly disappointing that we have had to place so many loyal employees on consultation. However, not to do so, would be to risk the security of the remaining staff at a time when we are starting to make some very encouraging progress in new markets.

“Only last month we secured a new customer in the dental care sector and we have recently made significant investment in the company to ensure we are able to operate with the utmost flexibility. Unfortunately, new customers take some time to come through the door and it would be foolish to hope that business may pick up significantly in the short term.

“There is absolutely no blame attached to the workforce – in fact last year, they achieved 100 per cent delivery performance – which is why this turn of events is even more upsetting.

“All our production staff are highly experienced and we are loathe to let anyone go.”

He added: “We are still in negotiations with our customer over the downturn in work, but the company’s board of directors has made a strategic decision to place fewer orders with SONE following operational changes within its own business.

“Whilst this news is a bitter blow, we are concentrating our efforts in sales and development. To this extent there are already some encouraging signs with a number of new enquiries and we will remain focused on achieving our vision and key aims.”

“Be assured, we are committed to continuing the progression of SONE and to turning this situation around in the coming months.”

This was posted in Bdaily's Members' News section by Tom Keighley .