Northampton-based manufacturing company reveals plans to cut about 225 jobs at site outside of county

A Northampton-based manufacturer is planning to cut around 225 jobs by 'mothballing' one of its sites outside of the county because of the coronavirus pandemic.

Forterra announced plans to close the Bison flooring manufacturing facility at Swadlincote, Derbyshire, with most of the job losses at its concrete products facilities.

A statement to the London Stock Exchange said: "Economic and industry forecasts indicate a prolonged impact from Covid-19 on the UK economy and more specifically the construction sector.

"Although the Construction Products Association's most recent forecast anticipates the residential construction market will recover during 2021, output in 2021 is forecast to be approximately 20 per cent lower than in 2019.

"Accordingly, we are taking steps to restructure the group's operations in line with the anticipated decline in medium-term demand."

Forterra, which has its headquarters at Grange Park Court, said its revenue declined by 39 per cent in the five months to May 31, with a year-on-year decline of 86 per cent in April and 62 per cent in May.

As a result, there will be new shift patterns and adjustments to the size and structure of support functions, while all precast concrete flooring products will be made at its Hoveringham facility in Nottinghamshire.

The hollowcore flooring site in Swadlincote will be shut down once the current order book is completed but the firm said this will not affect the specialist precast concrete facility at the same base.

"Despite the economic circumstances created by Covid-19, the board remains confident that the group is well-positioned to take advantage of the attractive long-term market fundamentals in order to continue delivering sustainable shareholder value," the statement added.