240 jobs at risk at air seat firm

Mr Brown spoke of the need to create and keep jobs in Wales

More than 240 jobs are under threat at manufacturing company praised by Prime Minister Gordon Brown during a visit six months ago.

Contour Premium Aircraft Seating, which makes aircraft seats at two factories at Cwmbran, Torfaen, revealed 40 redundancies a month after the visit.

The firm has now warned that up to a quarter of its 976 workers risk losing their jobs by the end of 2010.

The firm said the move comes as part of a cost reduction initiative.

Contour, part of Premium Aircraft Interiors Group, designs, manufactures and distributes aircraft seating for airlines including British Airways and Air France.

In a statement the company confirmed that had announced a number of cost reduction initiatives aimed at making the company and its Cwmbran factories more competitive in the current economic climate.

During the consultation period we will endeavour to mitigate as much of the impact on our employees as possible Mark Crompton, managing director

These included changes to the shift pattern and changes to the shift and overtime premiums to be paid.

In addition the firm announced that over the next few months the Cwmbran factories would focus on core activities only.

It said the action being taken was to secure the long term future of the business in Wales, but "unfortunately" could result in job losses, up to a quarter of the current workforce of 976 by the end of 2010.

Mr Crompton said: "We have a solid order book and a new product portfolio that is attracting orders even through this economic downturn.

"During the consultation period we will endeavour to mitigate as much of the impact on our employees as possible."

Downturn

The Prime Minister was accompanied on his January visit to the factory by Welsh First Minister Rhodri Morgan and Paul Murphy, then Welsh Secretary.

Addressing the press at the factory Mr Brown commented: "Wales has been investing in some of the great new industries of the future and is in a position to benefit when the world grows, as it will come back to doing soon."

At the time the firm said it had not been badly affected by the downturn, though chief executive Paul Carter predicted that his company would not remain unscathed.

"Will we be immune? No," he said. "But will we become another Woolworths? No.

"There will be short term pain, but I'm sure it will be manageable."