Pittards Leeds site at risk of closure
01/12/2005
UK tanner Pittards has begun a 90-day consultation period that may ultimately lead to the consolidation of production at its Yeovil and Ethiopian sites, and the cessation of production in Leeds.
The Leeds operation, which was loss-making in 2004 and in the first half of this year, has had a particularly difficult third quarter as a result of disappointing sales and continuing problems with raw material sourcing. Substantial increases in energy and waste treatment costs have also overwhelmed the savings made in other overheads and as a consequence, the group’s trading loss in the second half is likely to be substantially greater than the loss in the first six months.
The Leeds operation, which was loss-making in 2004 and in the first half of this year, has had a particularly difficult third quarter as a result of disappointing sales and continuing problems with raw material sourcing. Substantial increases in energy and waste treatment costs have also overwhelmed the savings made in other overheads and as a consequence, the group’s trading loss in the second half is likely to be substantially greater than the loss in the first six months.
Pittards chairman, SD Boyd, said: "By consolidating production in two facilities rather than three, we would improve our international competitiveness not least through the elimination of the fixed costs associated with the Leeds operation.
"We continue to make progress in reducing debt. Total borrowings were £9.2m at 31 October compared with £11.1m at 30 June 2005, and £11.7m at the end of 2004."
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