A COMPANY making tumble driers has blamed soaring costs and the economic slump for a decision to axe 50 jobs.
Crosslee, based at Hipperholme, has begun consultations with Government officials and trade union Unite over the job cuts, which will take effect from October 27.
The company has 500 employees and draws many of its workers from Calderdale and Kirklees.
Managing director David Boyle said: “It is highly regrettable that we are now faced with having to advise members of our workforce of a potential redundancy situation with the loss of up to 50 jobs, which will include the possibility of compulsory redundancies.
“The company needs to take positive action during these difficult times in order to secure its future position as a leading manufacturer of its products.”
Mr Boyle said turnover fell by 27.6% during the year to the end of July while the volume of sales was at a 16-year low.
He said the company had tried to weather the storm during the last year in the expectation of improved trading this year – but instead had been hit by “massive rises” of between 30% and 80% in raw material costs as well as higher oil prices, which hit distribution costs.
The business had also been hit by the weaker pound, the slump in the UK construction industry and a decline in consumer spending.
Mr Boyle said the company’s key markets Spain, Germany, Holland, France and Portugal were similarly affected.
Said Mr Boyle: “Some of our customers are finding trading exceptionally difficult due to the current state of the economy and this has resulted in significant difficulties in achieving the higher prices we now require for the products we manufacture.”
Crosslee, which was formed in 1986, produces the White Knight range of tumble driers as well as gas fires under the Royal Cozyfires brand and Hostess heated food trolleys.
At its peak, the Hipperholme factory can produce more than 350 driers an hour and 600,000 a year.
The products are sold in 75 countries.
