Royal Doulton to shift jobs to Indonesia
Royal Doulton to shift jobs to Indonesia
Associated Press, London
Royal Doulton PLC will shift more production from Britain to Indonesia and cut its global work force by one-fifth, the china and glassware company said Wednesday.
The group plans to close one of its four factories at Stoke-on-Trent and transfer the production of its Royal Albert china brand to the group factory in Indonesia, the company said.
The group, which produces tableware and china figurines, is also negotiating to buy out the substantial part of the minority interest held by its partner in Indonesia for 2 million pounds (US$2.8 million) to reduce the minority interest from 30 percent to 5 percent.
In the next two years, the group said it intends to close up to 100 retail outlets worldwide. Its products are sold in department stores and gift shops in many countries.
The group said it expects to cut its work force by 500 in Britain and by as many elsewhere in the world
The company is to focus on its three global fine china brands, Royal Doulton, Minton and Royal Albert. Shares in the group closed down 24 percent at 10.5 pence ($1.50) valuing it at 8.7 million pounds.
"At the end of 1998, when we commenced a radical restructuring of the group, which lost 39 million pounds ($55 million) in that year, we commented that restoring the group's fortunes would be neither quick, easy or cheap," chairman Hamish Grossart said.
"Since the beginning of 1999, overheads have been cut by 16 percent, stocks by 40 percent and debt by 43 percent and employee numbers reduced by 30 percent.
"The further measures announced today are targeted to cut unit production costs by over 20 percent, overheads by a further 30 percent, stocks by a further 25 percent and employee numbers will reduce by a further 20 percent." The company announced plans to raise 18.9 million pounds through a rights issue.
It projected exceptional costs up to 20 million pounds in the next two years to cover layoffs, closing retail outlets and moving production to Indonesia.