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Pilkington glass factory in St Helens cuts 140 jobs | Pilkington glass factory in St Helens cuts 140 jobs |
(about 11 hours later) | |
Pilkington Glass is to halt glass production at a St Helens factory, with the loss of 140 jobs, it has announced. | Pilkington Glass is to halt glass production at a St Helens factory, with the loss of 140 jobs, it has announced. |
The firm, which employs 2,500 staff across the UK, said it decided to end manufacturing at the Cowley Hill site after making "huge losses". | The firm, which employs 2,500 staff across the UK, said it decided to end manufacturing at the Cowley Hill site after making "huge losses". |
It received £5m from the government, to invest in new production techniques and the creation of 254 jobs across its St Helens sites, in December 2011. | It received £5m from the government, to invest in new production techniques and the creation of 254 jobs across its St Helens sites, in December 2011. |
The GMB union said the news was a "devastating blow" for the area. | The GMB union said the news was a "devastating blow" for the area. |
Trade union Unite added that it would be "scrutinising the company's proposals". | |
In February staff at the site threatened to strike over plans to freeze salaries or axe pension increases due to the firm's "financial position". | In February staff at the site threatened to strike over plans to freeze salaries or axe pension increases due to the firm's "financial position". |
Redundancy discussions | Redundancy discussions |
The firm has produced glass at the factory since 1871. | The firm has produced glass at the factory since 1871. |
It will continue to manufacture float glass at its larger production line at Greengate in St Helens, and other activity including laminating and silvering will continue at Cowley Hill. | It will continue to manufacture float glass at its larger production line at Greengate in St Helens, and other activity including laminating and silvering will continue at Cowley Hill. |
Pilkington Glass managing director, Matt Buckley, said the decision followed falling demand for architectural glass in the economic downturn. | Pilkington Glass managing director, Matt Buckley, said the decision followed falling demand for architectural glass in the economic downturn. |
He said: "This segment of our business is hugely loss-making and we have had to address it in order to protect the rest of our business." | He said: "This segment of our business is hugely loss-making and we have had to address it in order to protect the rest of our business." |
The firm said it was in discussions over compulsory and voluntary redundancies with employees and their representatives. | The firm said it was in discussions over compulsory and voluntary redundancies with employees and their representatives. |
Unite assistant general secretary Tony Burke said the union will meet the company and also meet "the workforce to listen to their views on this terrible announcement". | |
"These are skilled manufacturing jobs and we will be doing as much as possible to mitigate the impact on the workforce." | |
Charlie Leonard, of the GMB union, added: "The loss of highly skilled, well-paid jobs is yet another major blow to the core of UK manufacturing." | |
Pilkington closed its factory in Basildon, Essex, in 2011 with the loss of 30 jobs. | Pilkington closed its factory in Basildon, Essex, in 2011 with the loss of 30 jobs. |
It is owned by Japan-based firm NSG, which cut 3,500 jobs globally in February 2012 |