This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/wales/7941231.stm
The article has changed 7 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| End of the line for Hoover plant | End of the line for Hoover plant |
| (30 minutes later) | |
| Union officials carrying a mock coffin will mark the end of 60 years of washing machine production at Merthyr Tydfil's Hoover factory. | Union officials carrying a mock coffin will mark the end of 60 years of washing machine production at Merthyr Tydfil's Hoover factory. |
| They will lead a procession from the plant in the town on Friday, as the last machines roll off the production line. | They will lead a procession from the plant in the town on Friday, as the last machines roll off the production line. |
| The decision to end manufacturing will see 337 people lose their jobs. | The decision to end manufacturing will see 337 people lose their jobs. |
| The site will retain its headquarter status and warehousing, employing around 100 staff. | The site will retain its headquarter status and warehousing, employing around 100 staff. |
| But union officials said Friday marked the end of an era for the town of Merthyr. | But union officials said Friday marked the end of an era for the town of Merthyr. |
| Fighting back tears, the factory's Unite union shop steward, John Jones, said: "I'm getting very emotional - it's going to be a difficult morning for everyone, and I'm absolutely gutted. | |
| "We do believe it was inevitable but we do believe the company has gone for profit. They have gone to the low cost countries." Every machine, by the time we put all our costs on to it, is losing us money David Lunt, Hoover vice-president | |
| The Hoover factory has been linked with the town of Merthyr since it began production in 1948. In its heyday, the factory's workforce swelled to more than 5,000 people. | The Hoover factory has been linked with the town of Merthyr since it began production in 1948. In its heyday, the factory's workforce swelled to more than 5,000 people. |
| It was also the site that manufactured the Sinclair C5 electric buggy, which proved to be a commercial disaster, with production halted just nine months after its launch. | It was also the site that manufactured the Sinclair C5 electric buggy, which proved to be a commercial disaster, with production halted just nine months after its launch. |
| The company, which is owned by the Italian firm Candy, agreed that the decision to end production in Merthyr was based on the cost of production. | The company, which is owned by the Italian firm Candy, agreed that the decision to end production in Merthyr was based on the cost of production. |
| Recession | Recession |
| Hoover vice-president, David Lunt said the company had done all it could to cut costs, but it was still losing money on every machine it made. | Hoover vice-president, David Lunt said the company had done all it could to cut costs, but it was still losing money on every machine it made. |
| "Whatever happened, whatever adjustments we made, we just could not make those machines at a price in this country," he insisted. | "Whatever happened, whatever adjustments we made, we just could not make those machines at a price in this country," he insisted. |
| "Labour costs are more in this country compared to others. Even things like fixed costs, the plant equipment, and even the price of the buildings is higher in this country." | "Labour costs are more in this country compared to others. Even things like fixed costs, the plant equipment, and even the price of the buildings is higher in this country." |
| He also argued that what he described as an "awful, awful" decision to stop manufacturing would have been taken regardless of the current recession. | He also argued that what he described as an "awful, awful" decision to stop manufacturing would have been taken regardless of the current recession. |
| "The latest recession has just made things worse, but would not have affected this decision. We would have had to have done this. | "The latest recession has just made things worse, but would not have affected this decision. We would have had to have done this. |
| The Sinclair C5 proved to be a commercial disaster | The Sinclair C5 proved to be a commercial disaster |
| "Every machine, by the time we put all our costs on to it, is losing us money. | "Every machine, by the time we put all our costs on to it, is losing us money. |
| "This site had become efficient - it just hadn't become cost efficient." | "This site had become efficient - it just hadn't become cost efficient." |
| The assembly government said its priority now was to support those who were losing their jobs. | The assembly government said its priority now was to support those who were losing their jobs. |
| It said a team of specialists, including representatives from Merthyr council and Hoover, had already started a study on how the factory site could be used. | It said a team of specialists, including representatives from Merthyr council and Hoover, had already started a study on how the factory site could be used. |
| "I understand fully the disappointment that very many people in Merthyr feel today," said the Deputy First Minister, Ieuan Wyn Jones. | "I understand fully the disappointment that very many people in Merthyr feel today," said the Deputy First Minister, Ieuan Wyn Jones. |
| "But the end of manufacturing means that a site of some 30 acres is now available for redevelopment. | "But the end of manufacturing means that a site of some 30 acres is now available for redevelopment. |
| "Our task now is to look to the future - and make good the loss of jobs and the impact of the closure on the community." | "Our task now is to look to the future - and make good the loss of jobs and the impact of the closure on the community." |