Circatex future in doubt: cuts 350 jobs, buyer sought.
SOUTH SHIELDS, U.K. -- Economic troubles continue to plague PCB maker Circatex, which laid off 350 workers--two-thirds of its staff--without warning March 29. Administrators for the company said an outside buyer is being sought.In announcing the cuts, the company said a cash flow crisis had been sparked by increasingly tough foreign competition. Ian Kings, who was appointed administrator of the plant, released a statement saying, "The company has been working with its creditors to try and find a solution to its problems. However, the expected level of future orders has not been achieved and consequently the directors feel that they are left with no alternative but to seek the protection afforded by an administration order.
"As administrators it is our retention to continue to trade the business with a view to obtaining a sale as a going concern and obtaining the best realization for creditors and a continuation of employment for employees," the statement said.
Last year Circatex cut 37 jobs and workers took a 10% pay cut as the company struggled to right itself.
Circatex was formed in 2001 through a management buyout from the European PCB Group. The plant has also operated under the names of Viasystems, ISL and Plessey Circuits Ltd.
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| Author: | Buetow, Mike |
|---|---|
| Publication: | Printed Circuit Design & Manufacture |
| Date: | May 1, 2004 |
| Words: | 205 |
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