H+H Celcon to cut 20% of UK workforce

Aircrete block manufacturer H+H Celcon has started a consultation to close its Westbury factory in Wiltshire, resulting in the loss of nearly 50 jobs - around 20% of its workforce.

The company, which employs around 250 people across the UK, has been hard hit by the fallout from the housebuilding downturn.

The company said that any closures of its other sites were "unlikely" but that it could not rule out further job losses.

H+H Celcon head of marketing Ian Exall told CJ: "We are in consultation with the people involved. Obviously the view is to look at potentially closing the factory. But I must stress that it is early days and there is a consultation process that has just started."

"The market demand for our product which is mostly drawn from the housebuilding and home improvement sectors is significantly down as we all know and that has had a significant impact on the demand for our product and we are having to look at adjustments to our production capabilities," he added.

The Kent-based manufacturer is one of the major players in the brick and block market, which has suffered badly in the housebuilding downturn.  

July's Industry Barometer of the products sector, compiled by Ernst and Young and the Construction Products Association (CPA), registered its lowest fall since it was launched more than two years ago.

The CPA said that manufacturers of bricks and blocks bore the brunt of the slowdown, with a score of just 25 - just a third of the score two quarters ago.

A total of 10 building block plants have closed in recent years as the industry adjusts to lower volumes.