Partner

UK - Bonds says 38 staff are at potential risk

Reading time: min

AROUND a third of workers at a foundry firm could leave under restructuring plans, The Northern Echo can reveal.

Bonds says 38 staff are at potential risk under changes to operations at Tow Law, County Durham.

The company, which employs 112 people, is assessing its future after Brexit anxieties added to oil and gas difficulties.

Bosses last night said they understood the magnitude of the proposals on staff, but added they have a duty to secure the company’s long-term outlook.

They also said the 38 figure is not a confirmed number of redundancies.

Bonds, which made cannonballs for the British Army during the Crimean War at Tow Law, is looking at plans to switch from two sites in the town to a larger, existing base in nearby Crook.

The Crook site, a former fridge factory, is around twice the size of Bonds’ Tow Law presence, with significant investment needed to improve the latter, particularly its Ironworks Road site, which is surrounded by houses and sits next to Tow Law Town’s football ground.

Paul Duncan, chairman of BondsHold Limited, which operates the Bonds businesses, previously warned the EU vote would hit the company, and he said that despite its best efforts, changes are now having to be made.

He said: “We bought Bonds Foundry in 2000 when it was in administration; it would have closed otherwise.

“Over the years we have employed around 100 people there.

“The last major plant renewal was 25 years ago and we have spent substantial sums each year.

“In the meanwhile, we have invested around £5m at Crook; after all the changes there will be more than 75 people employed at Crook.”

According to latest accounts, BondsHold suffered an annual loss of £880,488 as the fall in the oil price hit projects, and Mr Duncan said it was having to adjust to a difficult marketplace.

He added: “With the state of the oil and gas market and impending Brexit threat, it doesn’t make sense to spend a substantial sum renewing Tow Law.

“With the expected removal of EU regional funding, it would be virtually impossible to raise external funding.

“It is not acceptable for us to do nothing, hoping for better days ahead; that truly would be a prescription for failure.

“We are addressing changes for the greater good.

“There are obviously negative consequences but these changes will leave us better placed for the future.”

Known for making pump casings and valves for the offshore industry, Bonds has supported the North Sea sector for decades.

However, its history goes much further, back to the Crimean War, while it has also repaired Royal Navy anchors.

The company’s Tow Law North works oversee finishing and quality control of products up to 12,000kg, while its South works carry out moulding and casting work.

Its Crook site caters for medium-sized castings from 50kg to 2,500kg.

The Northern Echo first reported Bonds’ plans last week, on the same day tank track maker, Cook Defence Systems, in Stanhope, County Durham, confirmed 19 job losses after falling mining sector demand.

Source: thenorthernecho.co.uk

[0]