Cleveland Bridge to make 240 redundant

A quarter of Cleveland Bridge's entire workforce of 920 face redundancy as a result of clients "stalling" over a number of future projects.
Brian Rogan, deputy managing director of the steel fabrication and bridge-building business, said: "We are very disappointed that we find ourselves in this situation. We have been very successful in the recent past but the market has changed. The big projects are coming to a close and there are few such projects in the short-term.
"We will work with the staff consultative committee, trade unions and representatives to achieve our commercial needs in as sensitive and speedy manner as possible."
Cleveland Bridge's axe will fall on around 240 employees at its base in Darlington. They work around the globe, wherever the group wins work. The split is 75 non-manual and 165 manual jobs. The cuts will take effect this summer over a five-month period.
Cleveland Bridge UK's latest published financial report shows a massive pre-tax loss of almost £14m in 2002 on a turnover of £29m. A spokeswoman said that when the figures for 2003 are made public they will show a pre-tax profit of £3m on turnover of £100m.
"That's all down to the ebb and flow of the business we are in," she said. "A lot of big projects are coming to an end and others [that should replace them] are still in the planning phase and are stalling at the moment."
Cleveland Bridge has the £60m contract with Multiplex to supply and erect steelwork for the new Wembley National Stadium. "We are staffed up for our Wembley stadium project, which is unaffected."
Tony Rae, the former group commercial manager for Kvaerner's structural steel businesses, led an £8m management buy-out of Cleveland Bridge in 2000. He said it had been losing core business because of internal conflicts within Kvaerner.
At that time losses over the 10 previous years amounted to £42m.
Rae has now retired and senior posts are held by Roddy Grant, the group's chief operating officer, and Alan Nightingale, managing director, who is currently off ill, suffering from meningitis.
The Al Rushaid Investment Group lifted its initial 58% stake in the group to 89% in September 2002. Shekhar Shetty is the finance director.
In January, 155t of Cleveland Bridge's deck steelwork bound for the longest cable stayed bridge structure in the world between Rion and Antrion in Greece, sank into the sea in a severe storm.