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15/08/2008
Staff Face Axe As Copper Factory Announces Closure
Up to 135 workers are facing the axe as a Welsh wire factory has announced its closure.
The Dutch owners of the Draka copper facility in Llanelli said the business will be "consolidated" with its other European operations.
The sales area of its operation in Llanelli will also be transferred to its UK headquarters in Derby.
Michael Bosman, the Director of Investor Relations at Draka said: "Of course it is a very harsh measure but we are doing our best to maintain as many jobs as possible.
"We have to buy the [copper] rods from the continent, and ship them back to Europe, draw wire from them, and then ship it back to our factories in Europe.
"So that means the cost has increased tremendously in the last two years, and economically it is not wise to maintain this production site."
Draka says it hopes some of the Llanelli staff could be transferred to its Derby cable operations, which will now increase its copper wire production.
Mr Bosman added that staff would also have the opportunity to move to the continent.
However, a member of staff, who did not wish to be named, said "it’s a kick in the teeth" and "there's nothing left in Llanelli for us now that can offer us a reasonable living wage".
The company's copper wire division supply more than 50,000 tonnes of the product a year, across 15 European countries and Russia.
The firm has a workforce of 9,000 people across Europe, with an annual turnover of £1.6 billion.
The company has now entered a period of consultation with union representatives.
(DS)
The Dutch owners of the Draka copper facility in Llanelli said the business will be "consolidated" with its other European operations.
The sales area of its operation in Llanelli will also be transferred to its UK headquarters in Derby.
Michael Bosman, the Director of Investor Relations at Draka said: "Of course it is a very harsh measure but we are doing our best to maintain as many jobs as possible.
"We have to buy the [copper] rods from the continent, and ship them back to Europe, draw wire from them, and then ship it back to our factories in Europe.
"So that means the cost has increased tremendously in the last two years, and economically it is not wise to maintain this production site."
Draka says it hopes some of the Llanelli staff could be transferred to its Derby cable operations, which will now increase its copper wire production.
Mr Bosman added that staff would also have the opportunity to move to the continent.
However, a member of staff, who did not wish to be named, said "it’s a kick in the teeth" and "there's nothing left in Llanelli for us now that can offer us a reasonable living wage".
The company's copper wire division supply more than 50,000 tonnes of the product a year, across 15 European countries and Russia.
The firm has a workforce of 9,000 people across Europe, with an annual turnover of £1.6 billion.
The company has now entered a period of consultation with union representatives.
(DS)
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