UK: Sirdar Proposes Plant Shutdown After H1 Slump
The company, which posted an operating profit of £3.42m in the previous first half, also reported a drop in pre-tax profit for the six-month period to £1.16m, down from £3.01m in the same period of the prior year.
According to a statement from Sirdar, the "unacceptable" results have led to an impending restructure of the company's specialist yarns division.
"We believe that, if restructured, we can reduce both costs and risks resulting in a significantly more profitable business," the company said.
"(As such,) we intend to start a program of consultation with the workforce and the appropriate trade unions about a proposal to cease manufacturing at the Wakefield site."
If it goes ahead, the move could cost Sirdar £1.8m in severance payments, asset write-offs and excess establishment costs, and is expected to be completed by autumn this year.
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