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The closure of Britain’s largest fiber glass factory was confirmed on Wednesday despite efforts by ministers to find a last minute buyer for the government’s industrial strategy.
Electric Glass Fiber UK, which manufactures glass fiber used in electric cars and wind turbines in the Vigan, employs around 250 people and collided with a combination of weak sales and UK’s high industrial power prices.
The Japanese owner of the factory, Nippon Electric Glass (NEG) decided to close the site at a board meeting in Tokyo on Wednesday. In April, the company warned that if a buyer is not found within two months, it would be forced to close the facility.
Neg on Wednesday confirmed in a stock market filing that it would shut down the operation of the factory and be ready for voluntary liquidation after considering various options during the review period. The production will stop at the end of June, the couple.
A group of UK officials with trade secretary Jonathan Renneds, Greater Manchester Mayor Andy Bernham and Sir Kir Stmper Business Advisor Varun Chandra tried to facilitate a rescue deal for the site, according to people with knowledge of talks.
The London-based investment vehicle, Tegu, was in special talks to buy the site, but asked the government to reduce £ 5MN financing for the deal.
However, the ministers refused to do so, and the conversation then separated, said people said.
Tegu President Jack Khan told FT: “The fundamental issue here is that the UK government is standing and watching the fall of the British industry.”
A separate private equity bidder also placed in a proposal with £ 10mn upfront, but Nippon condemned after demanding a £ 2MN brake fee.
Neg said the loss in the unit was £ 12MN last year. The most recent accounts for the year from December 2023 showed a loss of £ 3.5MN after tax on sale, which fell 17 percent to £ 56mn.
Also, high energy costs, the rapid increase in sugar imports of glass fiber in Europe led to severe pressure.
Burnham A meeting with the Nippon officials is in Japan on Wednesday, but it cannot happen until the closed decision is already.
Josh Simmons, MP for Makerfield, where the factory based, said that he was “angry about this result and doubt and bitter disappointed [Nippon] Was ever serious about saving these jobs and selling the plant ”.
He said that the Japanese company “created a new problem for each one which we solved”.
“As the Chancellor said, we live in a world where it matters who makes things and where,” he told FT. “I will continue to work continuously with the government to ensure that there is a bright industrial future in places like Hindle Green.”
The government said that Industry Minister Sarah Jones recently met with Nippon, “And we continue to work with them to understand those challenges in Wigan and ensure that the UK’s glass industry is globally competitive”.
It states: “We are supporting such companies in energy-intensive industries through our British industry supercharger, which is expected to reduce power prices for businesses. More than £ 5BN in 10 years.”
