Renold, a maker of industrial chains and power transmission equipment, plans to close its plant at Bredbury in Manchester, putting 230 jobs at risk.
The company, which has issued a number of profit warnings in recent months, has conducted a strategic review under a new management team, and as part of this it has concluded the Bredbury chain plant is not economically viable.
It will begin a consultation period with its employees which it hopes to conclude by the end of October. Chief executive Robert Purcell said:
We know this will be a period of uncertainty for our staff at Bredbury and we are committed to consulting fully with our employees and their representatives. We do however have a pressing need to reduce our cost base if the group is to realise its future potential.
Renold's shares are currently more than 4% lower 28p.
