Metal surface treatment specialist Hardide PLC said it is to cut staff in the UK and suspend operations at its Houston manufacturing plant in response to the continuing uncertainty over sales and the adverse market conditions.
In a trading update, Hardide said a number of its customers' markets, particularly in the oil and gas, automotive and construction industries, have been adversely affected by the economic downturn and the latest sales forecast for Hardide's product to these sectors for the year ending September 2009 is significantly below current market expectations.
The Hardide manufacturing facility in Houston will be suspended until sales are sufficient to re-commence operations. All product and samples being processed in the US will be transferred to the UK. In the UK, the group is reviewing its options to deal with the reduction in sales, which will include a redundancy programme. Hardide has seven employees in the US and 26 in the UK.
Chief executive Graham Hine said said: “The global economic downturn has hit our key markets severely and it is with regret that we have to take these measures to re-align our business to the new market conditions.”
“It is always hard to lose employees but we have no choice but to ensure that our staffing levels are in line with future business demands. It is particularly hard as this comes at a time when we have been making notable progress in commercialising a coating for titanium, in testing for the coating of diamonds and diamond grit, and when we have secured our first volume production order from a new blue chip oil and gas technology service provider,” he added.