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UK Market Data

Job losses at Optare Blackburn

OPTARE has announced job losses at its Blackburn plant with the immediate loss of 80 temporary contract staff and a consultation with the workforce and trade unions regarding redundancies.

The company says that the move has been caused by a lack of forward orders, particularly for double-deck vehicles, in the second half of 2009. It predicts that redundancies at Blackburn could be as much as 50 per cent of the current workforce of 320. The Leeds site which builds Solo and Tempo is not affected at the moment.

In a statement released today (24 April), Optare said: "For the first few months of 2009 demand was exceptionally strong and the business expanded its manned capacity through overtime and the recruitment of contract labour to ensure production throughput. Although there is no indication of a significant downturn in passenger demand for bus travel, an element of caution amongst some of the major operators has become evident.

"Since bus manufacturing typically requires a three-month lead time, the Group is taking the necessary steps to provide a better fit of its manned capacity to the order book and to re-align its cost base.

"Although currently busy there is not enough work to sustain current levels of employment when these orders have been completed. As such the company has released all of the temporary workers it recruited at the peak of production. Based on the company’s current best estimate of demand in quarter 3 there may be a reduction of up to 50 per cent in the number of permanent employees."

Optare has also shelved its plans to move to a new site in Blackburn.

John Fickling, Optare executive chairman said: “Optare remains committed to the double-deck market. We continue to provide a further choice to operators not just for body on chassis vehicles but shortly an integral double deck vehicle also. However, we are taking appropriate action to mitigate the impact of the current reduced demand for these vehicles so that our business is in a healthy position to maximise opportunities as the market improves.”

Optare"s announcement follows similar moves by the UK"s largest bus builders Wright Group and Alexander Dennis.

Meanwhile Optare is launching two new small coaches, Rapido - a wheelchair-accessible minicoach based on the Sprinter; and Viedo, a lower cost version of the Toro which will be Optare's first coach on an Iveco chassis. Both models are being built by Optare's coach partner Ferqui. Further details in next week's Bus and Coach Professional.

 www.optare.com