Bombshell jobs blow as nearly 100 at risk of redundancy due to 'unpredictable market'

Nidec Control Techniques has announced proposals to 'right-size operational capacity' in response to market conditions with proposed changes affecting staff at its factory in Newtown, with the potential the loss of up to 98 jobs.

A consultation process is set to begin with the affected employees and their representatives.

Anthony Pickering, Nidec Control Techniques President, said the proposals were needed to help the company build a more sustainable business and 'cannot be delayed any longer'.

The bombshell news prompted councillor David Selby, Powys County Council’s Cabinet Member for a More Prosperous Powys, to say: “We are naturally concerned about the announcement and the potential impact on individuals and the wider community.

“Nidec Control Techniques is an important asset to Powys and its economy.

"We are monitoring the situation and are working closely with our partners to support those who will be affected by these proposals.”

Control Techniques, part of Nidec – manufacturer of motors used to power hard-disk drives – said it is looking to 'rebalance its global operational footprint' to improve service levels by taking product manufacturing closer to the customers.

It said this was in response to both the fragility of the global supply chain exposed by the pandemic and sales growth in Asia and North America.

The company said staffing levels at the Wales factory were previously increased to deal with the unprecedented demand for product that occurred as the world emerged from the pandemic.

But it said market predictions for the coming years in the UK and European markets remain flat.

Martyn Cray, Vice President of Global Operations, said: “The drives market has been incredibly unpredictable in recent times with customers taking defensive actions as a reaction to insecurities in supply.

"This has made production capacity planning extremely difficult. We are saddened to take these actions and have delayed as long as possible whilst we sought confidence in the market outlook. We will continue to invest in our facilities and our people to support our future growth aspirations.”

Mr Pickering added: "I know this will be a difficult and unsettling time for the affected employees and their families. We will work closely with our Employee Committee and government at a national and local level to ensure we provide our employees with as much assistance and support as possible during this process.

"We are committed to being a key employer in the region and a high-quality, reliable partner to our customers both in our local markets and around the globe.

"We are better positioned now than ever before to serve what is a truly global market. We will continue to grow the Control Techniques business in a sustainable way through the development of high-quality, innovative products, delivered through our talented salesforce and partners into existing and emerging markets.”