British plastic maker moves operations to India
Thursday, 16 December 2004, 20:30 IST
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LONDON: Carclo, which makes plastic components and wire products, is moving much of its Lichfield operation to India. The Wakefield company, which employs 220 people at CTP Gills Cables in Lichfield, near Birmingham, said it was looking to outsource production to a new facility at Bangalore. The restructuring is part of the overhaul Carclo has undertaken in the last 12 months, which saw it report a return to profits. Chief executive Ian Williamson said the move could halve the workforce at Lichfield, who make control cables for the automotive industry, to around 100 or less people in two years' time. Williamson said Carclo was setting up the Indian operation to exploit Cheap labour costs, but he did not expect significant redundancies at Lichfield. He said: "Gills Cables has not done particularly well in the last 12 months. It has been hit with material price rises and the general pressure in automotive supplies. "Every month about 15 people leave the business and 15 new people join, but over the next few months we will gradually reduce this." Carclo chairman George Kennedy said: "In line with our strategy of freeing up resources for further expansion of our operations in low cost regions and in our specialist and new technology businesses, we have stepped up the pace of rationalisation in both the UK and US operations."
Source: IANS
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