Armstrong’s UK Plant May Close

Teesside, England, November 30--About 200 manufacturing jobs are under threat at a Teesside flooring factory after staff were warned the local Armstrong World Industries plant may close, according to IC Teesside. Union leaders today confirmed workers at Armstrong, at Teesside Industrial Estate, Thornaby, have been told the facility faces closure unless significant cost cuts are made. The company was unavailable for comment today. It is believed the factory's future is in danger as it is cheaper to outsource the production of vinyl flooring to firms abroad. Union bosses said they, with management, are now battling to save the site's future. One employee, who did not want to be named, claimed up to 40 jobs could be axed in the first phase of cost savings, but this rumor has been rejected by the unions. The worker said: "It has come out of the blue and everybody is pretty stunned. We had heard rumours and it was confirmed by the company's European Works Council members who then informed the union. "We are now fighting to bring costs down to try and do what we can to keep it open." The Transport and General Workers Union and Amicus have both held talks with the company over the factory's future. Jeff Morland, Amicus divisional officer, said: "The trade unions and the company are determined to find a way to reduce the costs of production to give the site a chance of survival. "There is competition within Armstrong to manufacture these products and even more competition outside the business. "The company has been looking at the possibility of outsourcing some production and is now putting together a plan to cut costs because if they do not then the goods will be made somewhere else." Tim Bush, of the Transport and General Workers Union, said: "There is no threat of closure in the short term but the company management recognises that something needs to be done to tackle certain problems with the business. "The parent company is looking at the future of the business and hopefully there will be more clarity after workers and management have decided on a plan for the site." Armstrong's purpose-built Teesside plant was opened 27 years ago and makes the Rhinofloor cushion vinyl product. Around 85 percent of its output is exported to more than 30 countries. The Teesside operation is part of Armstrong DLW, the European manufacturing arm of US-based Armstrong World Industries, which employs around 16,000 worldwide.