UP to 34 people are to lose their jobs when an Alveley factory closes its doors for the final time. Norfran Aluminium Ltd, based on the Alveley Industrial Estate, have confirmed they are moving all their work to their North East factory by the end of the month.
Managing director Gavin Young blamed a huge rise in electricity prices and a drop in sales for the closure. “We have had to make 34 people redundant and the jobs will be going on January 30,” he said. “We will be absorbing the work to our North East factory where we maintain a healthy order book.
“Since October 2008 our electricity bill has more than doubled to £23,000 per month and we have seen a severe drop in orders for December, January and February on this site.
“A lot of people talk about how badly the rise in electricity costs have affected householders, but think about what it’s doing to our industry.”
Norfran Aluminium Ltd has been based on Alveley Industrial Estate for 18 months. The company bought out Norfran Products Ltd – which had been based in Alveley from 1987 – after that company went bust in 2007, taking on the 34 staff.
“It was always our aim to move everything up to the North East, but we were expecting to be in Alveley for another four or five years,” added Mr Young.
“But the increasing cost of electricity, which has risen from four per cent of our outgoings to 10 per cent in less than a year, is ruining our industry and we just couldn’t continue with how it was.”
Alveley Parish Council chairman David Voysey said it was devastating news for the local community.
“Many people from around Alveley and Highley have enjoyed years of stable employment at Norfran,” he said. “It has been the mainstay of our small industrial estate and its closure is another economic blow that hits us so close to home. Our thoughts are with those who will lose their jobs and fall upon hard times.”
Highley Parish Councillor Dennis Bache called the closure a complete disaster for the area.
Norfran Aluminium Ltd specialised in manufacturing aluminium and zinc alloy diecastings. Its customers in Alveley included Jaguar Cars and Unipart.