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Tuesday, December 1, 1998 Published at 17:25 GMT


Business: The Company File

1,700 UK jobs go

Claremont is the latest casualty in a beleagured industry

Almost 1700 workers have lost their jobs as economic gloom continues to engulf the UK's manufacturing sector.

In another devastating blow for the UK clothing industry 1200 jobs are to go at a textiles group that is one of the main suppliers to retailer Marks and Spencer.


Mike McKay reports on more gloom for the textile industry
Meanwhile glass maker United Glass' plant in St Helens, Lancashire, is to close with the loss of another another 450 jobs.

Courtaulds Textiles is closing eight factories it recently acquired as part of its purchase of clothing group Claremont.

The factories are at Shoreham by Sea, South Shields, Giltbrook, Newton Aycliffe, Portsmouth, Sandiacre, Stanley and Woodville.


[ image: The textile industry is in dire straits]
The textile industry is in dire straits
A further 100 jobs a also being cut at two divisional headquarters in Selston and Rotherham for Claremont Lingerie and Claremont Casualwear.

Staff were stunned by the news and many were moved to tears by the shock announcement.

The move comes hot on the heels of swathe of job losses in the textiles industry

Marks & Spencer has angered the UK textile industry by announcing plans to source more goods from abroad, which can be produced more cheaply by lower cost workforces.

The move could be the final nail in the coffin for large parts of the UK clothing industry, which has already been brought to its knees by the strong pound and a slowdown in demand as the economy slows.


[ image: Disgruntled workers congregate to be told about the cuts]
Disgruntled workers congregate to be told about the cuts
The factory closures mean that around 2,000 textile jobs have been lost in the North East alone over the past few months.

The northern representative of the GMB union, Ron Bales, said the textile industry is 'going down the tube' and called on the government to help.

Colin Dyer, Courtaulds Textiles chief executive, said: "This move is essential to ensure that we remain competitive in the international, fast-moving clothing business..we..have decided to concentrate our manufacturing on our most efficient sites."

Courtaulds said it had bought the loss-making Claremont group in order to strengthen its market position in relation to Marks and Spencer.

Marks and Spencer is the mainstay of the UK clothing industry but has been forced to cut back on costs following a slump in profits.

Cracked glass

United Glass said it was forced to shut its plant following the fall in UK demand for glass packaging and increased competition from cheaper imports.

A glut in European glass-making capacity was also causing problems, the company said.

A spokesman for United Glass said: "This has been a very difficult decision to make. However, an extensive review of our market and the industry, both here and elsewhere in Europe, has highlighted that we face some difficult market conditions in this country over the next few years."

The decision angered unions.

Bill Mercer, United Glass' AEU union representative said: "I am disgusted, totally disgusted and disappointed at the way we have been treated. We just were not expecting it - it is a bolt from the blue."

The job losses are likey to lead to further calls for a cut in interest rates when the Bank of England's Monetary Policy Committee meets later this month.



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