17th Mar 2005 15:14
Weir Group PLC17 March 2005 17 March 2005 THE WEIR GROUP PLC ANNOUNCES PROPOSED RESTRUCTURING ATWEIR PUMPS AND WEIR VALVES & CONTROLS UK The Weir Group PLC has today announced a proposed restructuring of its WeirPumps business which is part of the Group's Clear Liquids division. The restructuring is being undertaken to align the business to the competitivedynamics of the market. We intend to focus our efforts on fewer higher marginproducts and on markets where our cost structure enables us to competeeffectively. The restructuring is likely to result in around 310 job losses at Weir Pumps'sites at Cathcart and Alloa in Scotland, Manchester and some regional salesoffices. As part of the restructuring programme and after a period ofconsolidation Weir intends to relocate to a more appropriate sized facilitywithin the greater Glasgow area. At the time of the Company's trading statement in January 2005 Weir announced itwas undertaking a strategic review of its Valves & Controls division. Thisreview has now been completed and plans to outsource non-essential operationsand relocate the division's UK based Valves business to a smaller modernfacility are now being implemented. The plan is likely to result in around 180job losses at the business' Huddersfield plant. These restructuring programmes are currently expected to incur exceptionalcharges in the order of £31m in 2005, all of which will be cash costs. Both of these reorganisations are expected to return the respective businessesto profitability in the first full year, 2006, with full recoveries of cashoutflows expected during the course of 2007. Consultation with employees and trade union representatives has commenced. Forthose employees affected by the restructurings Weir will provide a comprehensivepackage of support including job search services. Mark Selway, Chief Executive said, "I realise that these proposals will have asignificant impact on our employees. The actions we are taking will ensure thatwe have a sustainable future for Weir Pumps and our UK Valves businesses." The Company is scheduled to announce its preliminary results for the year ended31 December 2004 on Monday 21 March, 2005. For further information, please contact: The Weir Group PLC 0141 637 7111Helen Walker Maitland 020 7379 5151Suzanne BartchMichelle Jeffery This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Weir Group