Monday, December 18, 2006

Eastern promise is a delight to hear.

FOR 10 years the loyal, dedicated workers at what was once Courtaulds have had to deal with upheaval, uncertainty and the loss of hundreds of colleagues as the company has changed ownership three times.
With the arrival of major investment from China, the remaining 170 will be hoping it is third time lucky, and that the potential so many have seen in the carbon fibre plant can be realised.
It has been a long wait, and on top of it an agonising fortnight of protracted negotiations, as detail has been dissected and deadlines moved further and further back to accommodate the best possible result.
Every few hours I was in touch with the administrators and unions as this deal emerged. The feeling that it was going to be positive was there from an early stage, but so much can emerge when the detail is under so much scrutiny. No doubt documents have been translated, discussions interpreted and everything scrutinised to the nth degree.
So when Bluestar said yes, it must have been like mana from heaven for the workers and their families.
Despite a rich history of nearly 50 years producing some of the highest quality speciality fibres for uses ranging from clothing to aeroplane brakes, the past few years have been increasingly difficult.
The plant originally opened as Courtaulds in the late Fifties, pioneering the manufacture of hi-tech fibre Tencel and bringing more than 1,000 jobs. It was at the forefront of the industry’s technology, and is still regarded as way ahead of the competition.
It struggled in the Eighties, with periods of closure as the textile industry slumped.
It was then bought out by Acordis in January 1998. But Tencel is no longer produced at the Grimsby plant, and in 2001, 200 jobs went when the viscose plant was sold off.
On Friday, May 13, last year, administrators were called in by Acordis, which employed 475 workers at that time.
The consortium of private investors then put together the deal to save the plant from liquidation in October, by which time 200 jobs had been shed by the company, and operations in Bradford closed down.
Massive hopes for a new beginning last autumn fell flat, with new company Fibres Worldwide Ltd not lasting a year before calling on business recovery specialists. A major reason was the massive energy prices last winter, they hit in Fibres’ infancy, at a time when it had no credit history to buy gas in bulk, and was forced to pay ridiculous spot prices to keep the plant running.
In the first few months of the new era, production lines were pulled because the cost making the fibre would incur was more than it could sell for.
New markets were approached, but all the time the energy prices caused a major problem.
Then, on September 26, exactly 11 months to the day that a new dawn was heralded for the plant, 215 remaining members of staff found themselves back in the control of administrators Deloitte.
A speciality line was quickly closed with 40 jobs lost. Since then the business recovery giant has continued to run the firm, all the time working towards today’s ending, first looking at the bids, then going through due diligence and finally crucial and protracted negotiations involving lawyers for both parties.
Deloitte walk away with great credit. The TGWU wrote to them to say thank you, for once the first deadline came they could have said enough and shut down. Instead they did a difficult job with compassion and care, and with it maintained a key part of the south bank's make up.
Perhaps because of the unsuccessful venture last time out, they saw it as a personal challenge too. The professionalism and dedication of all involved, and from David Service down to the post room and gatehouse, it has proved worthwhile.
All of us at the Telegraph wish them well.

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