 Life's grim for major energy users Energy price hikes killing UK plc September 11th 2006 News that one hundred and fifty jobs will be axed at a hi-tech Sheffield foundry proves recent energy prices hikes are sounding the death knell for some UK firms with high energy consumption.
Sheffield's Laycast plant will close in November, eight years after the completion of a multi-million pound investment in equipment which created one of the most advanced foundries in Europe, reports local paper The Star, published by Sheffield Newspapers.
"The main reason for the closure is a significant increase in electricity costs from October," said managing director Mel Spears. The £17 million-a-year turnover business melts iron to produce castings for the automotive industry and faces a 65% increase in energy prices which would add £1 million to its annual costs. "The UK foundry industry and anybody who melts metals by electricity is being hammered by the price increases."
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