Falling profit blamed for job losses at anti-terror firm Allen-Vanguard
FALLING profit levels have been blamed for the loss of 82 jobs at a Tewkesbury anti-terrorism firm.
Allen-Vanguard, which specialises in making bomb detection devices, has revealed that its manufacturing operation in Alexandra Way, Ashchurch, would stop by the end of this year.
It said its total workforce of 105 would be scaled down to 23, with those remaining providing technical, engineering, sales and support capabilities.
Nobody at the Tewkesbury site was willing to speak yesterday, but in a statement, the US-owned company said: "Following extensive consultations with employees at its Tewkesbury facility, Allen-Vanguard today announced that it will cease manufacturing operations at the site to be effective by the end of 2012. These actions will regrettably result in redundancies at the site."
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Company president and chief executive Dennis Morris said: "In the course of our business planning, it became clear that the projected revenue for the Tewkesbury products is dropping significantly and the trend is projected to continue for the foreseeable future.
"These market factors required the company to streamline its cost structure to align with business expectations."
The company said it would now contract out its electronics production work to other manufacturers in the UK.
It said it would move production of its remotely operated vehicle (ROV) to Ottawa, Canada, as well as exploring alternative methods to maintain ROVs for its customers.
The company would also transfer assembly of its search products to Canada, where regulations permit, and outsource in the UK where required.
Mr Morris added: "We understand it is difficult for the affected employees. We are in discussions with those by this announcement as to its impact on them and we will provide services and support to make the transition as smooth as possible."
Shelby Powell, a member of Tewkesbury Chamber of Commerce's committee, said: "We're very sorry to hear about the redundancies. It's very sad for the employees and bad news for the Tewkesbury economy.
"It reflects the tough economic climate there is at the moment."