De la Rue has announced job losses at its Gateshead site - believed to be more than 250 - amid plans to close its banknote and 海角视频 passport printing operations.
The firm has set in motion a minimum 45-day consultation with affected employees after revealing a proposal to close its Gateshead site for future banknote production.
Under the proposal, the company will retain some core services and roles at the site, including its authentication services.
Liz Twist, Labour MP for Blaydon said: 鈥淚 am furious that De La Rue has once again let their brilliant workforce in Gateshead down.
鈥淪ince the loss of the British passport contract two years ago, senior management at De La Rue have promised their workforce in Gateshead more and more work, but in reality they have handed down more and more job cuts.
鈥淭hese are good, skilled jobs, so this is another huge blow for our region, which already suffers the highest unemployment across the country.
鈥淚 have demanded a meeting with the Chief Executive and Chairman of De La Rue and I will be speaking with Government Ministers and Gateshead Council, to try and prevent further local job losses. I will continue to work with Unite the Union to support their members as the consultation period begins.鈥
Unions said 255 jobs are at risk and said the decline of the site can be traced back to a 2018 Government decision which saw De La Rue lose the contract to print the 海角视频 passport.
In its annual report the firm said: 鈥淚n June 2020, we announced a consultation process to commence shortly on a proposal to cease banknote printing at our Gateshead site and we will start to engage in a collective consultation process with impacted employees.
鈥淯nder the proposal, the company will retain some core services and roles at the site.
鈥淪ubject to the consultation process, we would expect the banknote printing operations to cease at Gateshead by the end of this calendar year. In addition, the 海角视频 Passport operations, also in Gateshead, will cease operations during H1 2020/21 as the contract transfers to a new supplier.
鈥淲e remain committed to a strong, growing currency business, and will continue to print banknotes in the 海角视频 as well as at its international sites. Following a period of transition and the re-location of equipment from Gateshead to other sites, the proposal ensures that De La Rue has the same, or more, capacity as today, but operates with four currency print factories, down from five.
鈥淭his transition period is expected to be complete by the end of H2 2020/21. The consultation period is expected to last a minimum of 45 days.鈥
Unite assistant general secretary for manufacturing Steve Turner said: 鈥淯nite has feared this announcement since De La Rue was denied the 海角视频 passport contract in 2018.
鈥淯nite believes that the printing of 海角视频 passports is a matter of national security and this contract should never have been allowed to go overseas.
鈥淣o other major European country would allow their passports to be printed abroad. Our government talks the talk of 鈥榯aking back control鈥 and protecting 海角视频 interests but has consistently failed to walk the walk and move beyond soundbites to practical action supporting jobs and communities.
鈥淪ince the government decision to off-shore 海角视频 passport production, the long-term viability of the Gateshead site and the remaining skilled jobs it provides for the north east have been at risk.
"It cannot be acceptable that 海角视频 jobs are lost in part because production of the national currency moves overseas.
鈥淚t is now imperative that the government steps in to ensure that the site is preserved and that the contract to print passports is returned to the 海角视频 as a matter of urgency.鈥
The firm鈥檚 authentication services 鈥 which provides physical and digital solutions to authenticate products, helping to protect against counterfeits 鈥 would remain in place at the Gateshead site under the proposals.
De la Rue鈥檚 announcement comes as it reveals plan to raise 拢100m in new equity after publishing full year accounts, showing plummeting revenues and profits, with revenue tumbling 17% to 拢426.7m and adjusted operating profit falling 61% to 拢23.7m.
During the second half of the year, however, its currency division has seen a lift in demand, despite the consumer switch to contactless payments in light of the Covid-19 pandemic.
Clive Vacher, chief executive cfficer of De La Rue, added: 鈥淚 am pleased that we have seen increased utilisation of our factory capacity for currency in the second half, alongside strong growth in authentication and polymer throughout the year.
鈥淲e are now well under way with our plans to turnaround the company, with opportunities to grow our revenue and reduce our cost base. Our cost cutting initiatives will enable us to compete harder in the currency market, while the development of security features and polymer will drive growth for this division.
鈥淎uthentication and polymer continue to show strong growth and we see an increasing pipeline of new opportunities.
鈥淚 would like to thank my colleagues who have worked hard to get the company where it is today and we all recognise there is much more work to do. The 拢100m equity capital raising we are announcing today will strengthen the group鈥檚 balance sheet and help us deliver the turnaround plan, enabling De La Rue to create value for our employees, customers, suppliers and shareholders.鈥
