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Page last updated at 19:27 GMT, Friday, 10 October 2008 20:27 UK

Talks planned on factory future

The Eaton Electric plant in Holyhead
The company said it would offer help to workers

More talks are to be held about the future of an Anglesey electronics plant which could close next year with the loss of 265 jobs.

Eaton Electric in Holyhead has said it is considering moving production of its miniature circuit breakers to Europe where costs are lower.

Deputy First Minister Ieuan Wyn Jones met senior managers on Friday.

Afterwards he said more talks will be held between the Welsh Assembly Government and the company next week.

Mr Jones, the Anglesey AM, said: "We have a long way to go to even begin to make the company rethink its proposals to close the plant but I welcome their decision to work with us in order to discuss any possible way ahead."

The AM who is also the assembly government's economic development minister met Eaton's director of operations for Europe.

Glyn Haines
A lot of people have families here - husbands and wives - it will have a major knock-on effect
Glyn Haines, Unite

Mr Jones said he was "absolutely determined" that his department "leaves no stone unturned in the strongest possible effort to prevent the closure of the plant and the damage that closure would do to the community".

There has been strong opposition after the company announced on Thursday that it could close its plant in December 2009, laying off workers in March and moving work to continental Europe, where costs are 35% lower.

Eaton said the proposal to lay off so many employees and close the site reflected current market conditions with its foreign competitors undercutting and out-producing their Welsh operation from abroad

It said the plans were all part of its efforts to "increase efficiency and continue to optimise global competitiveness".

Anglesey council leader Phil Fowlie said it was potentially devastating for local people and the economy.

Devastating blow

He said: "Eaton Electrics provides employment for more than 260 people, and I will do everything in my power to safeguard their jobs.

"This news was not completely unexpected, but it is still nevertheless extremely hard to bear.

"Eaton Electrics is a major employer on the island and its loss would represent a devastating blow for Holyhead and the wider community."

Mr Fowlie will ask the chief executive of Eaton's parent company MEM UK for an urgent meeting, and has asked the assembly government and local MP Albert Owen to work together with the council.

Local Plaid councillor Trevor Lloyd Hughes said that if the job cuts did take place then it would prove difficult for the local community to cope financially.

Circuit breakers

"It's a disaster," he said. "You cannot realise how much of a disaster it is for the people of Holyhead.

The plant currently makes three million circuit breakers a year and started out as the Midland Electric Manufacturing Company in 1960.

The news did not come as a surprise to the workers.

Unite union representative Glyn Haines said: "A lot of people have families here - husbands and wives - it will have a major knock-on effect.

"A lot of the ladies here are in tears - they've been here many, many years."

The company said it appreciated the workers' "hard work and dedication" and would offer them "extensive support" in finding new jobs and a severance package.

Eaton bought out Germany's Moeller electronics group in April and is looking to transfer production to its Moeller's European plants, which produce 60m circuit breakers a year.


SEE ALSO
Island reels from latest jobs cut
10 Oct 08 |  North West Wales

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