The company which makes the famous Ronseal “does exactly what it says on the tin” wood stain is to shut its Plymouth factory putting 45 jobs at risk after making a loss of nearly £2million.
Sherwin-Williams Diversified Brands Ltd’s plant in Western Wood Way, Langage, is earmarked for closure and a 30-day consultation with staff has begun.
The US-owned paint manufacturing company aims to relocate operations to its main 海角视频 base in Sheffield and took the decision after a review of its sealant and caulk business and the “shifting global dynamics over the last several years”.
The company statement said the move in no way reflected on the dedication and performance of its staff in Plymouth, where the factory makes the Geocel sealant, and has been operating for several years. It is understood the factory once employed about 120 people but numbers have been declining.
The Plymouth and Sheffield factories are part of the giant American Sherwin-Williams Company, headquartered in Cleveland, Ohio, which boasted a turnover of US$17.9billion in 2019.
But the 海角视频 operations have been in the doldrums of late with documents filed at Companies House in September 2020 revealing a before-tax loss of £1,933,232 for the year to the end of 2019.
A year earlier Sherwin-Williams Diversified Brands, which bought Ronseal in 1997, made a profit of £1,651,999. Its annual report and financial statements revealed turnover dipped by 4% in 2019 due to “poor weather” and no dividends were paid.
The report said the firm had responded to tough competition by providing products with “unique selling points supported by well known advertising”.
Most Read
It had built up its inventory to enable it to cope with short-term effects from “continued uncertainty over Brexit and the risk of a hard Brexit with the possibility of associated tariffs and delays”. The report also revealed the company had invested £3,298,168 into its operation in Poland.
The report said the business’s customer base had been impacted by the Covid-19 pandemic in “different ways”, but the firm expected business in 2020 to be “stable”.
But it is now abandoning Plymouth and a company statement to Business Live said: “The Sherwin-Williams Company announces a proposal to close its Plymouth facility located on the southern coast of England.
“Beginning on September 18, 2020, the company entered into a 30-day collective consultation process with employees in accordance with applicable regulations.
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
To contact William: Email: william.telford@reachplc.com - Phone: 01752 293116 - Mob: 07584 594052 - Twitter: - LinkedIn: - Facebook:
Stay in touch: BusinessLive newsletters have been re-designed to make them even better. We send morning bulletins straight to your inbox on the latest news, views and opinion in the South West. Get our breaking news alerts and weekly sector reviews too. Sign up now - it's free and it only takes a minute. To sign up for Business Live's daily newsletters click .
And visit the Business Live South West LinkedIn page
“The proposal outlines the transfer of all manufacturing, filling and related activities to the Sherwin-Williams Sheffield site located in northern England.
“The decision to initiate the proposal to close the Plymouth site came after a comprehensive strategic review of the company’s sealant and caulk business and the shifting global dynamics over the last several years.
Don’t miss
“This proposal supports the goal of the company to strengthen its European footprint, drive manufacturing efficiencies and improve profitability in the business required to meet the needs of Sherwin-Williams customers.
“This decision was not easily made and in no way reflects the dedication or performance of the employees at the Plymouth facility.
“The proposal to close the plant will affect approximately 45 employees. The company will follow all required legal procedures while working to minimize the impact on employees and their families.”