Saint-Gobain PAM UK has announced the proposed closure of its Holwell factory in Melton Mowbray, NEMM understands.
The closure means 161 employees at risk of redundancy by Christmas.
It's the second blow in recent months for the local economy following the announcement of plans to close Arla's Tuxford and Tebbutt creamery in Thorpe End.
Saint-Gobain plans to transfer the manufacturing of access covers and gratings products to its factory in Blénod in France, where money has been spent on processes that reduce the amount of carbon emissions associated with the manufacture and supply of these products.
Plans could mean the works close at Christmas. Photo: Google
As it would take time to transfer production, the proposed UK closure is not expected until December 2024.
There is now a period of consultation with employees and the GMB union.
Alan Gwilliam, managing director of Saint-Gobain PAM UK, said: “It’s with great sadness we announce the proposed closure of our Holwell site in Melton Mowbray.
Our business has had to contend with Brexit, covid and considerable cost increases over the last few years. Despite the huge efforts from the Holwell team, the factory has become uncompetitive and with excess capacity within our European manufacturing footprint, the proposal to consolidate our manufacturing sites is the sensible solution.
The factory in France has recently had an investment to reduce the carbon intensity of production, which will result in a significant reduction in the carbon emissions related to our products of 50% in future. This is a considerable driver for our business and our customers as we continually seek ways to reduce our overall environmental impact.
“We know this is a significant announcement that will affect many local people as well as the many employees of the site, the majority of whom are from the town. Holwell has been an important part of the town since 1881 and we know there are many local people with current and past ties to the plant. We will of course act with consideration and respect to all involved as we move through this uncertain time.”
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