Wyndeham Announces Cessation of Manufacturing at Heron Site
Loss of IPC contract this summer worsened losses at UK printing plant.
Wyndeham Group announces today that it is entering into a 45-day consultation with all employees at Wyndeham Heron and which could result in the cessation of manufacturing at the site.
Heron has undergone a number of restructuring programs in recent years which have led to substantial redundancies. However, despite the continual downsizing of the business, the site continues to make losses which have worsened since July 1, 2014, when the IPC contract was lost.
Wyndeham Group announced last week that it is continuing to review the available capacity in the UK web offset market and has concluded that the Heron site cannot be returned to profitability in view of the current market conditions. The rate of volume decline in the sector has slowed in 2014 as the economy has improved and, in particular, advertising spend has increased. Wyndeham Group has had some success in replacing the lost IPC volume with new commercial work. However, these positive factors have not been sufficient to stem Heron’s increasing losses.
Heron is uncompetitive compared to Wyndeham Group’s other three web offset sites because of the age and specification of its plant and equipment. It lost its newest Lithoman IV printing press in a fire in 2011 and the business is now reliant on older 32pp presses for much of its output. Also, it is the only Wyndeham Group site that does not have its own cover press; this results in the expensive and time-consuming transportation of covers from other Group locations.
Should the consultation conclude in manufacturing ceasing at the Heron site then the work currently produced there would be moved to Southernprint, Peterborough and Roche where there is adequate capacity.
Paul Utting, Wyndeham Group’s Chief Executive, said “It has only been after much consideration that the decision to consult with the workforce has been taken and we very much regret the potential loss of jobs if no alternatives are found. However, the reality is that the web offset sector of the printing industry continues to face significant structural issues and an ongoing reduction in capacity is inevitable. We are determined to restructure our business to ensure that the Group as a whole remains competitive and will continue to concentrate on our most efficient plants as this cycle continues.”
