Union urges firm to consider bids to prevent closure of landmark Shrewsbury Radius factory

Radius Aerospace, based at Shrewsbury's famous former Sentinel Works on Whitchurch Road, is set to close in April next year – with the loss of around 120 jobs.

The firm is owned by the US-based Arlington Capital, with the plan for closure announced earlier this year.

The business, which was previously home to Doncasters, services the commercial aviation, business jet, military and industrial gas turbine markets.

It specialises in making aircraft engine and industrial gas turbine, machined and fabricated casings.

Now Unite the union has called for the firm's owners to "act responsibly", claiming that despite a number of potential buyers coming forward, the site is still set to shut next year.

In a letter to Arlington Capital, Unite said: “The potential closure of the Shrewsbury site, a significant and long-standing source of local employment, is of immense concern to us and the local community. Such a decision will lead to considerable job losses and have a wider economic impact on the region.

“In light of this situation, it is important to fully consider not only the immediate financial implications but also the significant cost associated with closing the Shrewsbury site.

"These costs include but are not limited to redundancy payments, site decommissioning, legal and consultation costs, potential penalties related to contracts, and damage to brand reputation, which may further impact Arlington's business relationships and future profitability.

“By contrast, we believe that by accepting a suitable bid and keeping the Shrewsbury business operational, these substantial closure costs could be avoided. Not only would this be a fiscally prudent decision, but it would also protect jobs, preserve the local economy, and safeguard the strong relationships with customers that the Shrewsbury business has cultivated over many years.”

Unite regional officer Andy Taylor said: “Unite is strongly urging Arlington to act responsibly and reconsider any bids made for the Radius Aerospace business in Shrewsbury. We have asked the company for a meeting to discuss potential ways forward to facilitate this. We strongly believe that this is the best way to find a beneficial solution that will protect jobs and the local community as well as the businesses involved.”

When the closure plan was announced the firm confirmed its Sheffield site would remain open.

Company bosses had blamed the 'declining financial performance' at the Shrewsbury facility for the decision.

Speaking in April when the closure plan was announced Kevan Donohoe, president of Radius Aerospace Europe, said: "For the last few years, the Radius Shrewsbury plant has experienced declining financial performance due to the significant changes in our industry as a result of the Covid pandemic, the reduction in the overall order book with key customers and their products, and more recently increased energy costs for the operation of the facility.

"Over the past three years, we have taken actions to adapt to this change in the market with our product offering, processes, and right sizing of the business to meet current demand.

"Unfortunately, despite these actions we have not been able to sufficiently improve the profitability of the site to ensure it remains a viable going concern.

"Due to this unfortunate position, we have come to the difficult decision to propose the closure of the Radius Shrewsbury, Whitchurch Road facility, with final operations completing by April 19, 2024."

Arlington Capital has been contacted for comment.