End of an era as Weir announces Cathcart closure

MANUFACTURING at Weir Group’s historic Cathcart headquarters is to end after more than 120 years at the site under a radical restructuring that will see almost 500 jobs cut throughout the UK, including half in Scotland.

The 134-year-old engineering group, which has been based at Cathcart since the mid-1880s, told employees yesterday that 260 will be sacked by the end of year, with the remaining 940 eventually relocated to a new Glasgow site - probably during 2007.

Chief executive Mark Selway told The Scotsman that the restructuring was essential to ensure the long-term survival of Weir’s engineering business in Glasgow.

"Back in 2002, we set out with the goal of introducing best practice throughout the company and I’m very proud of how far the company has come since then," he said.

"As difficult as these decisions are to make, the current market dynamics mean they are necessary to ensure Weir is in the best possible shape."

The job losses, mainly from the group’s clear liquids division, will see Weir’s 1,200-strong workforce at Cathcart cut to about 940, while its factories in Alloa and Manchester will see cuts of four and 28 respectively. In addition, 180 employees at Weir’s valves business in Huddersfield will also be cut from the payroll.

The group will now enter into a 90-day consultation period with employees and unions, with all 490 cuts completed by the end of the year.

In total, Selway said the restructuring would result in an exceptional charge of 31 million, but he added that he expected the division to return to profitability in 2006 with the costs recovered by the end of 2007.

Since he took over in 2001, Selway has led a five-year turnaround programme aimed at improving Weir’s overall efficiency and productivity. The strategy, which is now in its third year, has led to Weir’s global workforce being cut from 10,000 to less than 8,000.

Yesterday, Selway was adamant that Weir was committed to Glasgow despite the decision to move manufacturing away from Cathcart. "These job cuts do not mean we are scaling back in Scotland," he said. "We remain very committed to Glasgow, we have a real passion for Scotland and we will stay headquartered in Cathcart."

The restructuring announcement came just four days before Weir is due to release its annual results, with analysts expecting profits of 58.5m. Shares in Weir closed down 5.25p at 318.75p, valuing the company at 670m.