A LEEDS manufacturing firm has confirmed as many as 50 jobs could be in jeopardy as it faces reorganisation.
A statement issued yesterday by Pegler Yorkshire confirmed a global change in demand has meant it faces challenges with overcapacity in some areas of the business – and relocation of some manufacturing services from Stourton is being considered.
As a result, consultation has begun with unions and around 50 staff who could be affected.
Pegler Yorkshire manufactures plumbing and heating products including pipe joints, taps, shower fittings and valves and has a proud history dating back over a century.
As well as Leeds, the company has offices in Doncaster and is part of the flow control division of the international Aalberts Industries empire, which has manufacturing plants in Hungary and China, serving customers in 110 countries.
The company, which employs a total of 688 people, has invested millions in its manufacturing plants in the UK in recent years but, yesterday, managing director Stuart Anderson confirmed the redundancies could be the outcome of a strategic review.
He said: “We have identified a steady decline in the requirement for one of our traditional products which, unfortunately may result in the move of its manufacture from our facilities in Leeds to other facilities in the group.
“We will of course look at alternative employment for the up to 50 staff affected within our UK operations, where possible, and initially seek voluntary redundancies.
“Additionally, we will offer every support to those individuals affected and make available career specialists to assist in preparing employees for alternative employment.
“Whilst this action is hard for everyone, it is imperative that Pegler Yorkshire recognises change in demand. The company is taking steps to move toward the provision of a more system-based solution which we believe will have a positive impact on the business once again.”