Qualceram to seek redundancies

Bathroom manufacturer Qualceram Shires is to seek 95 redundancies at its ceramics production plant at Stoke-on-Trent in England.

The move, which follows a round of wage reductions at the plant, comes as part of an operational restructuring aimed at reducing Qualceram's overall cost base and improving customer service.

The company is also embarking on an efficiency drive at its plants in Arklow, Co Wicklow, and Longton, Stoke on Trent, both of which will be upgraded to increase output. Longton, employing 190 people, is Qualceram's largest plant. Out of the company's workforce of 850, 150 are employed in Arklow.

Qualceram company secretary Mr Aidan Clince said yesterday that the company had been seeking to reduce its cost base in Britain since the acquisition of Shires two years ago, but that jobs in the Republic were not currently under threat.

He said the ceramics plant at Hanley, Stoke-on-Trent, "was not matching expectations" and needed to be "scaled back".

As part of the general restructuring, Qualceram is planning to enter into outsourcing agreements with a number of European manufacturers.

Mr Clince said the company was initially looking to build these relationships with Polish companies, building on existing outsourcing deals with manufacturers in Asia. He declined to estimate how much money such a move would save Qualceram until a total number of redundancies could be agreed.

"We're hoping to get 95," he said, stressing that negotiations on redundancies were just beginning.

Last month, Qualceram chief executive Mr John O'Loughlin said the company was exploring a number of options to reduce the high levels of debt on its balance sheet, including the disposal of some properties.

Mr Clince said yesterday that demand for Qualceram's products remained strong in Britain and the Republic and that the latest restructuring was aimed at placing the company to meet anticipated demand in the future.

Qualceram stock closed at €2.40 yesterday, unchanged on the day.