Exel Composites plans to downsize its operations in the United Kingdom
Exel Composites has initiated employee consultations to evaluate downsizing of its operations in Runcorn in the United Kingdom. The consultations concern 48 employees.
Currently Exel Composites’ European operations include several small production sites. To improve Group’s efficiency and profitability downsizing of the operations is proposed. The downsizing review will follow UK legislation and any resulting changes will be completed to ensure minimal impact on customers.
The potential downsizing would be estimated to result in approximately EUR 1.6 million annual cost savings, with customer base continuing to be served by the downsized UK or other Exel factories. Exel Composites will record a one-time cash cost of approximately EUR 3.0 million and a one-time non-cash asset write-down of approximately EUR 1.1 million in the first quarter of 2023 as items affecting comparability.
Decisions regarding the planned downsizing and employee impact will be taken only after the local consultations have been concluded. In the event of any changes Exel Composites will offer employees support in finding new employment.
