UPDATED: Jobs could be lost on the Isle of Wight following an announcement by Gurit today (Wednesday) that they will be restructuring the business to focus on component manufacturing in Hungary.
Gurit, who operate a factory at St Cross Business Park in Newport, have initiated a divestment process for the composite component side of the business with new owners being sought in 2019.
Today’s news – which comes less than a week before Christmas – means that the jobs of those involved in the production of parts are at risk, but speaking to Island Echo this morning Gurit said that other jobs such as engineering and senior management roles remain secure at this moment in time.
In October 2017 a move of ‘prepreg’ production to Spain saw the loss of 70 jobs here on the Island.
Gurit have not yet indicated exactly how many jobs could be lost by the ceasing of manufacturing parts in England next year./
In a statement issued from Switzerland this morning, the company said:
“Based on the recent business performance with continued losses in the Composite Components business, the Company revises its operating profit guidance down from the previously communicated mid-level of the 8-10% target range to an expected 6.5-7.5% operating profit margin range for the full year 2018. This is caused by higher losses and restructuring expenses in Composite Components compared to what was expected at half year 2018.
“Without the losses in Composite Components, Gurit would have exceeded the margin guidance range of 8-10% in CY 2018 in its continued business.
Article continues below this advertisement “Gurit has decided to restructure the Composite Components business and to concentrate the component manufacturing in Hungary in 2019. Moreover a divestment process for Composite Components has been initiated”.
The global Group has production sites and offices in Switzerland, Denmark, Germany, Hungary, Italy, Poland, Spain, the UK., Turkey, Canada, the USA, Ecuador, New Zealand, India and China.
UPDATE @ 18:40 – Isle of Wight MP Bob Seely has tonight issued a statement about the job losses…
“I am very concerned to hear the news of potential job losses, especially just before Christmas.
“I have spoken to Gurit’s Chief Executive today 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”.
