IBP Conex makes parts for pipes and taps at its factory in Dundee

IBP Conex Ltd has confirmed it is to transfer the work carried out at its plant in the city to Poland.

The company said it needed to use cheaper labour to remain competitive in its market, after sharp rises in the price of basic materials.

Management broke the news on Thursday to staff and unions, who are now being consulted about the proposals.

Reduce costs

IBP chairman Trevor Murch told the BBC Scotland news website: "There is a likelihood the plant will be closed and up to 66 jobs will be affected.

"The work will mostly be transferred to our other facilities in Europe. Some will be sourced to China, but the main location is Poland.

"The drive behind the decision is that products are made from copper and copper prices have more than doubled.

"It is harder to compete in our market place and we have to look to see if we can cut costs. One way is to reduce the labour costs of manufacture."

'Difficult time'

Workers at the factory are being offered help to find other jobs by Scottish Enterprise Tayside.

A spokeswoman said: "We appreciate that this is a difficult time for the employees and we are seeking further information from the company.

"We will look at what we can do and what action is appropriate.

"There is continual and rapid change in the global manufacturing industry and we are working with companies to help them move towards more knowledge-intensive, high-skilled manufacturing to help Scotland compete on a global level.

"In Tayside, we are working closely with a number of companies to help them diversify their products and get into new markets to take advantage of opportunities and have already seen strong results.''