Pirelli to shed 445 jobs

Pirelli blames a downturn in demand for the job losses

Cable-makers Pirelli are to cut 445 jobs as they close down part of their UK operation.

The company is closing a plant in Erith, Kent, with the loss of 260 jobs and making 185 staff redundant as work is put on hold at one of its premises in Hampshire.

Company chiefs have blamed the measures on the downturn in the global telecommunications industry.

Employees and trade unions are now in talks with Pirelli about the job losses.

While this (downturn in demand) has necessitated difficult decisions, these are necessary for the long-term health of our cables business, which remains an important market for us in the UK.

Pirelli spokesman

The Erith operation makes specialist high voltage cables for the energy industry and submarine equipment.

The glass fibre unit at Bishopstoke, near Eastleigh in Hampshire, will be kept in working order and used again if the economic climate improves, a company spokesman said.

The unit makes the raw material for optical fibre cable but has been hit by the "sudden cessation" of orders which showed no sign of improving in the near future.

He added: "Both the telecoms and energy markets are global in nature and both have been adversely affected by a drastic downturn in demand that has led to overcapacity throughout the world.

"While this has necessitated difficult decisions, these are necessary for the long-term health of our cables business, which remains an important market for us in the UK."

Optical cables will continue to be made at Bishopstoke and the site remains the commercial headquarters for Pirelli telecommunications division in the UK.

Meanwhile, production of oil-filled cables will be transferred to the company's Eastleigh plant, creating 50 new jobs.