ABOUT 150 people are at risk of redundancy as a result of a proposal to shut a North East factory. 

Global chemical and engineering company Johnson Matthey, which has a base in Billingham, has started a consultation with its battery materials employees.

The division was put up for sale last year but discussions have not resulted in an agreement to sell the entire business as a going concern.

A spokesperson for the company said it would seek to re-deploy affected workers elsewhere in the country.

About 150 people work in the company's battery materials division at its Chilton site in Billingham, out of a workforce of about 500 in the town. 

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A company spokesperson said: "We are still in active talks about selling parts of the Battery Materials business to different players and a redeployment programme has started – we are fully committed to supporting our employees through the process and will support them to find other opportunities within JM."

Stockton North MP Alex Cunningham said: “This news is obviously very disappointing, both to the people who now face redundancy and to Teesside as a whole, which has an unemployment rate almost twice the national average.

“Johnson Matthey was also a key player in supporting the transition to electric vehicles, and the only major British one, and it’s exit means the industry is now dominated with foreign firms.

“The Government has serious questions to answer about how it will support British industries going forward. I hope a buyer can be found for the business and jobs can be saved, and will do anything I can to support the company and employees during this difficult period.”

Johnson Matthey, a 204 year old British firm, put its battery business up for sale in November as it said it was unable to compete with alternative technologies and larger, lower cost manufacturers.

But it said it has been unable to strike a deal, despite talks with a number of possible buyers.

Tees Valley Mayor Ben Houchen said: “It is extremely disappointing to hear that Johnson Matthey are closing their facility in Billingham and my immediate thoughts are with the workforce and their families affected by this announcement.

“This is ordinary people’s lives we are talking about here, and I’ll be doing all I can to ensure that every possible assistance is given to those affected.

"I’ve held calls with senior directors of the company to offer my support and assistance and will continue to do so as they begin their search for a buyer for this great local employer.”

 

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