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Last Updated: Thursday, 5 January 2006, 16:39 GMT
Gas price hike affects tile firm
Gas ring, generic
Gas prices have caused problems for the Ruabon company
Rising gas prices could force a Wrexham tile company to stop production for up to two months, union officials have warned.

Dennis Ruabon, which manufactures quarry tiles, has seen its gas bills treble in recent months.

A T&G union spokesman at the plant said the company is struggling to meet the cost of gas, needed to fire its kilns.

If the eight week shutdown goes ahead it will effect 90 production workers who will be temporarily laid off.

This is a temporary measure to get us through the winter months when the gas price is at its highest
Max Rogers, T&G union

Max Rogers, branch secretary at the tile factory at Ruabon near Wrexham, said he was told of the problems on the 28 December.

"It's really unfortunate, the gas prices have hit us really hard. This is a temporary measure to get us through the winter months when the gas price is at its highest," he said.

"We met yesterday with directors and shop stewards. There will be some work and we'll have to make sure it's shared out fairly between the staff. It's going to painful for them financially.

"It's just impossible to continue at this level of production with gas prices this high. We have customers and we have stocks. Trading will go on. I do remain very hopeful for the future of Dennis," he added.

Kronospan factory
The Kronospan factory in Wrexham closed because of gas prices

The company has not made itself available to comment on the situation.

The increased price of gas is a problem throughout Europe as the demand is higher during winter months.

The Kronospan chipboard factory in Chirk near Wrexham has also been affected by the crisis and was forced to shut for a couple of days over Christmas.

Peter Landl, the company's general manager said there are numerous other companies in the same situation and it is a "dangerous development for the UK" in that it may deter inward investment in the manufacturing sector," he said.


SEE ALSO:
Where Britain gets its gas from
04 Jan 06 |  Business
Energy prices ease after gas deal
04 Jan 06 |  Business


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