Rehau Group outlines planned plant closure in Wales

Photo by Rehau Rehau uPVC is used to manufacture a range of home products

Global plastics manufacturer Rehau Group has released details outlining plans to close its manufacturing plant in Amlwch, located on the north coast of Anglesey.

The Rehau Group plant has been operating a plant in Amlwch for more than 40 years. Should the factory close, more than 100 workers could lose their jobs.

According to Rehau, the market for PVC Edgeband, the primary polymer product manufactured at the Amlwch plant, has gone into significant decline.

New shift patterns to help improve productivity and investments in new machinery could not off-set the decline. 

The news comes shortly after Hitachi scrapped plans for construction of the new £20bn Wylfa Newydd nuclear plant, a project which could have brought hundreds of jobs to the region. The Japanese firm cancelled the project after already investing £2bn in the project.

A spokesperson for Rehau said: "With no sign of this demand recovering, and further investment in Amlwch or utilisation of the site for the manufacture of alternative products impossible due to space restrictions, we have taken the difficult decision to propose the closure of the site."

Should the Welsh plastics plant close, production of the PVC Edgeband and other products will be switched to other Rehau facilities across Europe with sufficient capacity. 

The Rehau Group is headquartered in Muri, Switzerland. In November last year, Rehau Verwaltungszentrale AG gained European Commission approval for its proposed merger with MB Barter & Trading AG, creating a group with potential sales of $2.5bn.

The Rehau statement continued: "In line with our corporate values, we intend to go above and beyond in the support we offer at this difficult time."

Rehau is planning a 90-day consultation period before making a final decision on the plant's future.

Anglesey MP Albert Owen said: "This is another bitter blow for the local economy with another foreign investor pulling its investment our and my thoughts [are] with the workforce, their families and the local community and I offer my support to them."

Various community leaders are planning to appeal for intervention by the Welsh government, possibly with promises of new investment intended to save the jobs now under threat.

Rehau has said its other factory in Blaenau Ffestiniog would not be affected.