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Glasgow-based valve and pumps Weir Group is to close five factories and some of its service centres in 2015 because of the “uncertain” economic outlook.
The cost-cutting measures put around 350 jobs at risk in the company, 50 within the UK. The company supplies to the oil and gas, power and industrial and mining sectors.
The factories, three of which are in the US, one in France and one in Australia, mainly make product for the mining sector. The manufacturing activities at these sites will be consolidated into larger, existing facilities.
The move, which will take place after employee consultations, is expected to save the company £35 million a year.
Keith Cochrane, chief executive of the Weir Group, said: “While the global economic and end market outlook remains uncertain, our strong competitive positioning enables us to continue to invest through the cycle to deliver sustainable, profitable growth. Our large installed base continues to provide a solid platform for high-quality, recurring aftermarket revenues that drive growth.
“We’ve also continued to make good operational and strategic progress in the third quarter, taking actions to further improve efficiencies across the Group and accelerating our Minerals strategy with the acquisition of Trio. Weir is well placed to deliver good organic growth in 2014, in line with our earlier guidance.”
Weir acquired Trio, a Chinese rock crushing company, last month, following a failed bid to acquire Finnish rival Metso.