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UK knitwear firm to axe 47 jobs after efficiency review

The company, founded more than 230 years ago, is closing its Clay Cross factory, despite operating with successful profits, Derbyshire Times reports.

17th January 2015

Knitting Industry
 |  Chesterfield

Knitwear, Knitted Outerwear, Knitted Accessories

The company, founded more than 230 years ago, announced on Monday that it is closing its Clay Cross factory, off Eldon Road, after an efficiency review of its overall manufacturing operations.

Sustaining manufacturing

Ian Maclean, Managing Director, told the newspaper: “We’re very much a family firm so naturally it’s very sad when even a small number of jobs must be put at risk.”

“However, sustaining manufacturing in Britain means taking tough business decisions to ensure we can maintain 370 skilled jobs and still be making quality knitwear locally for hundreds of years to come.”

Consultation period

According to the Derbyshire Times, the firm also aims to consolidate its Derbyshire manufacturing operations at its Lea Mills site, nine miles from Clay Cross, where 21 new jobs will be made available.

Meanwhile, staff at the Clay Cross factory have entered into a 30 day consultation period to consider their options. A John Smedley spokesman said it hopes that structural changes will strengthen and improve manufacturing operations and efficiency.

Efficiency drive

 The John Smedley business was founded in Derbyshire in 1784 and has sites in Clay Cross, Lea Mills and Armthrope, near Doncaster. Following losses in 2010, the family-owned business claims it is now making a profit due to what it refers to as a “skills investment and productivity improvement”, the newspaper says.

John Smedley has also appointed former Toyota UK Managing Director Dr Bryan Jackson as a non-executive board chairman as it continues its efficiency drive to reduce costs and encourage investment.

The Community Union told the newspaper it will fight to reverse the Clay Cross decision. Steve McCool, Community Union national officer, believes there are options which could be examined to avoid job losses including job sharing.

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