Renold to propose closing its Bredbury chain plant

27th Aug 2013 17:03

Industrial chain and power transmission product supplier Renold has begun consultations with staff at its Bredbury plant. That comes after an on-going strategic review identified its Manchester plant as not economically viable due to the existence of excess capacity at the same. The firm's latest full-year results, published on May 28th, included £9.4m in impairment charges related to excess capacity at its Chain division's manufacturing operations. In recent years, the Bredbury plant in Manchester has experienced much lower activity levels and incurred significant financial losses.The ultimate objective of said review is to lower the company's breakeven point, the threshold of sales above which it is profitable. Shares of the company finished the day lower by 4.27% at the 28.0p mark. AB