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Whitby manufacturing firm to close
WHITBY'S SPC UK Ltd has announced it is to close its plant and consolidate it with its site in Wiltshire.
The rubber compounding firm, based in Stainsacre Lane, was a sub-tenant of Europower which is no longer trading after going into administration in December.
SPC UK occupies part of the site which is now owned by Sainsbury's – the subject of a planning application to be decided on Thursday.
SPC is offering each of its 25 employees relocation packages.
The timing of the relocation has yet to be finalised but is expected to be within the next six months.
Steve Hallas, managing director of SPC UK Ltd said: "Since our landlords, Europower, went into administration, we have been considering options to safeguard the long-term future of our business.
"Current trading conditions, our sub lease and the recession have meant that irrespective of whether or not Sainsbury's is granted planning, we are unable to continue on this site and therefore have decided to consolidate the business into our Westbury plant.
"Unfortunately market and economic conditions have meant that SPC's future as a business in Whitby simply isn't sustainable.
"As sub-tenants of a business in administration our future was very uncertain but now Sainsbury's has given us a new lease on more favourable terms than that which we had under Europower and this means that we can manage our relocation in the best way.
"Sainsbury's would be prepared to enter into a local employment agreement whereby employees of SPC would have an early opportunity to apply for jobs in the new store."
Jo Try, regional devleopment executive at Sainsbury's, has worked closely with SPC since it purchased the Stainsacre Lane site with a view to relocating the company within Whitby but it had not been possible.
She added: "Sainsbury's are however doing everything we can to help.
"Our store will create 250 jobs and we very much hope that those SPC employees who don't relocate to Westbury will come and work for Sainsbury's."
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Friday 25 May 2012
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