Sheffield-based SIG cuts 900 jobs

The UK residential sector has been hard hit by the downturn

A leading supplier to the construction industry, SIG, has said it will shed 900 jobs and close 65 trading sites.

The insulation specialist said it had to cut 7% of its workforce because of "reduced activity in new residential construction in the UK and Ireland".

Sheffield-based SIG also warned that annual profit would be at the lower end of market expectations.

The announcement came a day after materials firm Wolseley said it would cut 2,300 more jobs.

SIG expects to shed 700 jobs across the UK and 130 in Ireland.

It will also cut 70 jobs in mainland Europe, where it trades from 370 outlets. It said the downturn was much less marked there.

SIG added that it still expected the UK non-residential sector to provide strong business in 2009.