Landis+Gyr is set to move production of its gas smart meter overseas, which could see the loss of 288 jobs at its Stockport site on Birdhall Lane, according to an announcement from the GMB union.
The GMB Union reported that the company has partially blamed Brexit and the subsequent weakening of the GBP against the Euro, which led to an increase of 20% in production costs, for its decision.
Landis+Gyr is now proposing to move the manufacture of gas smart meters to Europe and Asia.
Shaun Buckley, GMB organiser, said:
The decision to move gas smart meter manufacturing abroad is catastrophic news for GMB members at Landis+Gyr – and their families – in Stockport.
“It is another example of pressures companies are facing due to the uncertainty of Brexit.
“GMB will be working tirelessly to secure the best possible deal for affected members during consultation.”
Landis+Gyr issued the following statement:
Landis+Gyr has begun a consultation process with the staff at its manufacturing sites in Stockport and Northfields to examine means of optimising the production costs of its UK smart meters.
“We place great value on the contribution that our staff provide to our business and are committed to conducting the consultation process in an open and collaborative fashion. We expect the consultation process to run until April 2018 and will provide further details on the outcome of the process at that time.”
In 2011, Landis+Gyr was acquired by the Toshiba Corporation, forming a world-class partnership that was globally recognised for its promising impact on the development of smart grids and communities. Committed to investing in technologies, Toshiba helped Landis+Gyr acquire know how via acquisition, in addition to assisting in entering the Japanese market. In July 2017 Toshiba sold their investment in Landis+Gyr.
The company cite a 20% increase in product costs – in part due to the weak pound against the Euro post Brexit.