Plymouth factory is to close with all staff likely to lose their jobs as the coronavirus lockdown is blamed for losing it future contracts.
PCH Manufacturing staff have been told all 54 of them are in danger of losing their jobs when the form ceases trading on August 31, 2020.
Management told employees at the plant in Prince Rock that the company was unable to compete with larger national competitors and that the Covid-19 lockdown had meant it was unable to complete some contracts or secure new ones.
PCH Manufacturing is the manufacturing arm of social housing provider Plymouth Community Homes (PCH), and specialises in making PVCu windows, signage and joinery.
When PCH was hived off from Plymouth City Council as a privatised housing provider, PCH Manufacturing became a sister company, having been at one time responsible for making products for the up-keep of council housing.
John Clark, chief executive of Plymouth Community Homes (PCH), said: “We’ve had to make the extremely difficult and sad decision to close our manufacturing unit at Prince Rock Depot from August 31.
“This is not a decision we’ve taken lightly, as we are all acutely aware that this will affect 54 people and their families.”
He added: “We will, of course, try to minimise the need for redundancies by matching the skills and experience of staff to any vacancies within PCH.
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“As part of the support we’re providing, we are keen to hear from local businesses who may have opportunities that we could share with our highly skilled and experienced workforce.”
Mr Clark said: “Although we have great products made by skilled people it has been very difficult for our relatively small company to compete in a highly competitive national market. Then, more recently, the significant impact of Covid-19 means we have been unable to complete orders or secure sales for the future in order for us to have a viable business going forward.
“The board has received both legal and specialist advice and based on this has had to take the difficult decision to close, as PCH is unable to financially subsidise a commercial business. We will be contacting customers shortly to discuss arrangements for any outstanding works.
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Previously part of Plymouth City Council, the factory transferred to PCH as part of the stock transfer agreement in 2009.
Mr Clark and Gill Martin, PCH’s director of corporate and manufacturing services, personally told the workers the dismal news at a, socially distanced, meeting at the depot.
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The majority of these workers are currently furloughed under the Government’s Job Retention Scheme.
Mr Clark said: “Everyone at PCH would like to thank PCH Manufacturing staff for their work over many years, some of which you’ll see prominently displayed throughout the city, including benches and plaques on the Barbican and signs at Drake’s Circus, not to mention every window and door in all social housing properties in Plymouth.
“The manufacturing unit transferred to PCH in 2009, along with the housing stock, and was initially involved in supplying component parts in the work needed to bring former council houses up to Decent Homes standards. As this came to an end, we needed to move progressively into external sales to supplement the internal business.
“It’s an organisation that has a proud history, with exceptionally skilled people, that has done a great deal for PCH and the city of Plymouth. It’s a huge loss and one that myself, our Board and the whole of PCH is deeply saddened by.”