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Philip Evans


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COLYTON: CeramTec closing down?

Friday, 07 February 2014


ONE of Colyton’s biggest employers, CeramTec UK Ltd., is under threat of closure as profitability has “declined steadily” over the past 10 years.
Staff were told last week that the future of the technical ceramics company, which has operated in Colyton for more than 40 years, was under consideration. The possible closure means “a number of jobs may be at risk”.
A statement issued last week said that the company was currently consulting with workplace representatives to discuss the possibility of avoiding or reducing the number of redundancies in ther event of closure, and that the group would support staff in any way it could.
On January 29th, chief technical officer of the international CeramTec group, Sigurd Adler, issued the following statement: “The profitability and viability of the CeramTec UK Ltd. production facility at Colyton has declined steadily over the last 10 years.
“Huge efforts have been made by the company and its hardworking employees to improve profitability through a variety of initiatives, but these have sadly not been enough to counter the effect of the overall economic situation, and changing market conditions affecting the group's UK business and there seems little prospect of significant future improvement.
“The group is therefore considering closing production at its Colyton facility, selling the site and passing current products to their group global network. If that were to happen, the group would be able to make and distribute these products at a reduced overall cost, with a view to extending their viable life within the group.
“This possibility unfortunately means that a number of jobs may be at risk, and the company has now started a consultation process with workplace representatives about this.
“During that consultation process, the company will try to reach agreement with representatives on a number of issues, including ways and means of avoiding or reducing the number of redundancy dismissals, and mitigating their consequences.
“If, following consultation, the decision is taken to close production at Colyton, the group will try to support staff in any way it can.
“The CeramTec Group is very sorry to have to make this announcement, particularly when the UK company has worked so hard to try to bring the factory into profitability.”
The factory in Sidmouth Road, Colyton, is the only CeramTec UK Ltd. outlet, a subsidary of the German-based, international company CeramTec - the global leader in the field of production and supply of advanced ceramics. Companies in the CeramTec Group supply products, often unseen, for almost every area of technical and working life.
The Colyton outlet focuses on production and sales of fuse bodies, substrates for resistors and gas igniters and laser plant for ceramic substrates. The company confirmed 16 job losses in 2009 but celebrated a successful turnturnaround in 2011, followed by the appointment of new managing director, Neil Bygrave, in 2012.


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