Isle of Wight job losses expected after announcement of ‘severe commercial problems’

Those working in automotive factory production at Newport-based engineering company, Gurit, are likely to have an uncertain Christmas after the company announced ‘severe commercial problems’ and issued a profit warning for the group.

Gurit building

Swiss engineering company, Gurit, who have a factory based on the Isle of Wight, have confirmed they will be moving their automotive factory production to Hungary next year, resulting in job losses.

Rudolf Hadorn, the Chief executive of Gurit Group, said the timing of the announcement (a few days before Christmas) ‘was unfortunate’, but due to Swiss stock market regulations the company had to announce their restructure plans.

Profit warning
Explaining the background to the decision, Mr Hadorn said,

“The business has had its troubles and severe commercial problems, and we issued a profit warning for the group.

“This will indeed mean staff reductions on the Isle of Wight. We have not communicated when or how, and when we know, we will share the news with staff first.

“The reason for announcing now is due to Swiss stock exchange regulations as we have to inform investors and it tolerates no delay. The timing in front of Christmas is unfortunate, but we are not being careless, we have to follow the rules.”

Long-running pattern
There has been a long-running pattern of job losses at the composite components business based at St Cross Business Park in Newport.

OnTheWight first reported layoffs in 2010, then again in 2012. There was more news of job losses in February 2015 and then again November 2015.

Jump forward to January 2017 and then October 2017. At which time the company said they remained confident.

Leader of the Isle of Wight council, Cllr Dave Stewart, said those skilled workers who lost their jobs could apply to work at the call centre.

Seely: Requested more generous severance packages
Isle of Wight Conservative MP, Robert Seely said he was very concerned to hear the news of the potential job losses, adding,

“I have spoken to Gurit’s Chief Executive today (Wednesday) to find out more and to voice the Island’s concerns. I understand that the losses may occur in the automotive factory production.

“I have specifically asked him to make any redundancy packages more generous than the statutory minimum to help people leaving the firm.

“I also asked him about other work at Gurit’s Island. He has reassured me that they remain committed to other part of the business on the Island.

“Despite these losses, the jobs market on the Isle of Wight remains robust and high-quality vacancies, like those recently announced at MHI Vestas, continue to be created.”

Our thoughts are with all those affected by the potential job losses.

Source: IWCP

Image: © Google Streetview

Thursday, 20th December, 2018 8:51am

By

ShortURL: http://wig.ht/2m0d

Filed under: Business, Island-wide, Isle of Wight News, Manufacturing, Top story

Any views or opinions presented in the comments below must comply with the Commenting 'House Rules' and are solely those of the author and do not represent those of OnTheWight.

Leave your Reply

Be the First to Comment