Weir Group unveils £35m cost-cutting drive

Glasgow-based engineer Weir Group today unveiled plans to save £35 million a year by shedding jobs and closing manufacturing sites and services centres.

Some 350 jobs will be lost around the globe, including ten in Scotland at the group’s power and industrial division.

The firm will also close five “small” manufacturing facilities across Australia, France and North America next year and pull out of lower-margin activities.

“Manufacturing activities will be consolidated into larger existing facilities, which will require a small amount of capital expenditure,” Weir said.

“These actions are expected to deliver annualised benefits of £35m, of which approximately £20m will be realised in 2015. It is estimated that one-off cash restructuring costs of approximately £25m and impairment charges of around £20m, arising on facility closures, will be incurred and recognised as an exceptional item.”

The cost-cutting plans were announced as Weir, led by chief executive Keith Cochrane, said it was on track to meet its full-year profit growth hopes following a rise in third-quarter earnings.