Laminate maker Formica says it is focussed on its North Shields plant, despite a substantial reduction in its workforce over the past few years.
New accounts for Formica Limited, covering 2024, show issues of market decline lead to a 20% drop in turnover to £35.7m. Despite the drop, the firm managed to narrow operating losses from nearly £37m to £8.3m.
The numbers follow a period of investment into the Coast Road site which have been designed to reduce costs. That has also meant significant shrinkage in the workforce which had been more than 500 people as recently as 2018, and now stands at 215.
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Formica has been making laminate products for residential and commercial customers for more than 70 years at the site, but now only uses the west part of it for production. Some of the buildings have been demolished in recent years - starting in 2021 with demolition of the old boilerhouse - and efforts have been to move factory processes away from nearby housing.
The firm said demolition work was expected to be finalised in the first half of this year, with the east part of the site now earmarked for closure. Last year approval was given to take down the site's Finished Goods Warehouse.
In 2017 its then owner, New Zealand-based Fletcher Building trailed a planned £40m investment into the facility which held the promise of job creation. But the wider Formica Group business was sold to Broadview Holding the following year for about $840m, becoming part of its global materials division alongside other brand names.
Last year workers at the Tyneside site staged a series of strikes over pay. And the new accounts show £300,000 of costs associated with restructuring.
Writing in the accounts, director Martijn Van der Zee said: "Formica Limped has completed a number of projects as part of a significant investment programme at its North Shields site, resulting in a reduced cost footprint. Meanwhile, the company has taken steps to strengthen its commercial margin.
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"Along with other actions such as administrative cost reductions and commercial and operational synergies with sister companies in the group, the financial run-rate of the company is improving and is expected to continue to improve both driven by the market demand as well as ongoing commercial and marketing initiatives."
He added: "The company is continuing to focus on its North Shields facility. Whilst reducing the factory footprint we believe through modernisation and centralization we will be able to support future growth in a controlled manner and therefore benefit from an improved operating leverage."
The Formica product dates back to 1913 when an employee of US-based Westinghouse filed a patent for process to make laminated insulators. Three years ago the company launched a London showroom which has since closed.