More than 200 jobs are at risk at two US-owned Bradford companies, with a further 170 set to go over the next two years at a local chemical plant, which is bearing the brunt of the latest round of cutbacks by its German owner.
The world’s largest chemicals firm BASF is cutting around 170 staff out of more than 700 at its Low Moor site as part of 500 global job losses in its specialised chemical businesses.
BASF is restructuring its water, oilfield and mining chemicals divisions and said a total of 215 jobs would have to go as a result, most of them in its British sites in Bradford and Grimsby.
In 2009 BASF made Bradford its global centre for water treatment products after acquiring the business from Swiss-based Ciba. The integration of Ciba into BASF resulted in nearly 4,000 job cuts globally and was intended to save the group £340 million a year from 2012.
The Bradford plant was Allied Colloids until Ciba bought it in 1998.
Hans W. Reiners, president of BASF’s performance chemicals division, said: “The planned comprehensive measures are needed to achieve cost competitiveness. These efforts will be backed by considerable investments in new technologies in Europe as well as in North America and in R&D.”
The company said the current cuts were prompted by a “changed market environment” and expects to complete the planned measures at the latest by end of 2015.
Greetings card giant Hallmark Cards has launched consultations about axing 130 full time jobs. The family-owned business is one of the district’s largest employers, with around 2,400 staff.
Consultations will also begin on Monday on up to 85 redundancies at electrical parts manufacturer Switchgear and Instrumentation, part of the Texas-based Powell group.
The company, based on Ripley Street, West Bowling, is looking to reduce numbers across the business, which currently employs around 280 people, as part of a review of its operations.
The company was bought for around £11 million in 2005 by Powell from the Ilkley-based NG Bailey group. The company designs and manufactures switchgear, motor control and power management systems.
Richard Fearnside, head of human resources, said staff had been told that redundancies were needed and the consultative process would determine the final number, expected to be up to 85.
He said: “It’s a regrettable situation and we are very sensitive about the impact on our employees. The consultations will last until the end of May and we will ensure that everything is done fairly and legally through the process.”
He said Powell had continued to invest in the Bradford site since acquiring the business and stressed there was no question of the business closing or leaving Bradford.
Around 85 jobs were cut at S&I in 2004 through a restructuring aimed at fighting off competition from overseas.
Hallmark Cards has its international headquarters at Bingley Road, Heaton and a major print plant at Dawson Lane, Dudley Hill, where in 2009 it opened a £12 million, 200,000 sq ft warehouse and distribution centre handling 30,000 cards an hour.
The company said it was investing in new systems to make the business ‘more agile and efficient’ and sustain its long-term future.
A spokesman said: “As part of our strategy to build a long term sustainable business that meets the demands of an increasingly dynamic consumer environment, we are investing in and developing systems to create more agile and efficient processes to deliver the best possible experience for our customers and partners.
“Regretfully, within our existing workforce of 2,400 employees, this exercise has identified 130 full time roles across the business which are no longer required within the organisation. As such, we have entered into a consultation process with those employees that may be affected. We appreciate that this is a difficult time for those colleagues involved but we are confident that the outcome will build a better, more robust and sustainable business for the future.”
Bradford Council leader Coun David Green said the local authority would be contacting the three firms to see if it could help them and the people affected by the cuts.
He said: “It’s devastating for the people involved and is a reaction to current market conditions. It shows how important it is that, in spite of austerity, we as a local authority try and support firms to maintain their operations locally and also to help them grow and prosper.”
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