JVC axe 300 jobs in eastern Europe

Three hundred jobs are to be lost with the closure of a television factory which is to switch production to eastern Europe, it was announced today.

The axe is to fall on the JVC plant in the UK.

Workers were said to be “devastated” at the move.

Unions said they were told production would shift to Poland.

Japan-based JVC confirmed it plans to end its UK manufacturing as part of a restructuring.

The plant was set up in 1987 to make TVs for the UK and European markets.

Today’s announcement said a rapid shift from traditional cathode ray tube (CRT) TVs to flat-panel display TVs over the past few years had led to a “drastic” fall in prices.

The company said: “JVC was forced to conclude that it would be difficult to continue production within the UK due to the resulting impact on profits.”

Other reasons for the decision were a fall in the proportion of the factory’s output sold in the UK.

Switching production to an undisclosed location in eastern Europe would reduce costs and increase profitability, it said.

“JMUK (JVC’s British operation) will begin consultations with union representatives today,” it said.

“JVC plans to terminate production at the end of July and initiate company liquidation procedures in September after the consultation procedures have been completed.”

Jim Farley of the Unite union told BBC Radio Scotland: “The workforce were assembled this morning to be told that the plant will be closing in July and all production will be switched to Poland, purely on the basis of cost and profitability.

“I have to say they are absolutely stunned.”

He went on: “We have a pretty devastated workforce and the impact is going to be considerable on the East Kilbride area.”

He said there had been redundancies declared at the plant a year ago, when management gave assurances that production would stay in Scotland.

“These are highly skilled workers and the product is excellent,” he said.

“It is a really devastating blow to this area.”