Hundreds of jobs face axe at factory

MORE than 300 jobs are at risk at a smart meter factory.

Landis+Gyr, in Stockport, has informed staff that roles could be axed due to increasing production costs.

Bosses at the Orion Business Park site say the UK’s ‘changing economic situation’ and the ‘very significant foreign exchange fluctuations’ in the past two years are behind the plans.

The manufacture of the firm’s British smart meters will instead be transferred to another facility in Romania over the course of this year, it is understood. An announcement sent out to staff said a total of 309 jobs in Stockport were at risk, plus another 65 at the firm’s Peterborough site.

The announcement said: “Despite the committed long-term contracts we have in place with our UK customers, our product costs are higher than anticipated.

“The UK’s changing economic situation and the very significant foreign exchange fluctuations over the last two years have led to a 20 per cent increase in the cost of our euro-sourced components and subassemblies. The combined effect of higher product costs and much less favourable exchange rates requires us to review our current position.”

It adds: “Under the proposal, your role is unfortunately currently at risk of redundancy. This is clearly regrettable and we understand that this is difficult news for everyone impacted.”

By 2020 smart meters will be rolled out as standard to homes and businesses across the country as part of a government initiative and will replace current gas and electricity meters.

In 2013 Landis+Gyr announced a deal with British Gas to supply the energy giant with 16 million smart meters.

As part of the deal with British Gas, Landis+Gyr said it would double its 600-strong UK workforce and extend its manufacturing facilities to meet not only the demands of British Gas’s roll-out, but also those of its other UK customers as the roll-out gathers pace.

A spokesman for Landis+Gyr said: “Landis+Gyr has begun a consultation process with the staff at its manufacturing sites in Stockport and Northfields to examine means of optimising the production costs of its UK smart meters.

“We place great value on the contribution that our staff provide to our business.

“We expect the consultation process to run until April 2018 and will provide further details on the outcome of the process at that time.”

‘Product costs are higher than anticipated’