(UK) — Tyrone Brick is to axe 62 jobs – 95% of the production workforce – following the major downturn in the construction industry.
The company, which has a surplus of 35 million bricks, is planning to cease the vast majority of production at the Coalisland facility, according to trade union Unite.
A 30-day consultation period got underway yesterday after the workforce and Unite were notified of the redundancy plans by management.
Tyrone Brick, part of international building materials group CRH, will retain a skeleton staff at the site to produce specialist bricks for the beleaguered construction sector.
A spokeswoman for company said: “The ongoing slowdown in construction activity has resulted in a significant reduction in demand for product and has necessitated a review of operations across the business.
“Tyrone Brick confirms that it continues to be engaged in a consultative process with its workforce and their representatives. Discussions are now at an advanced stage and a number of redundancies are envisaged.”
The company has said normal operations will continue at Tyrone Brick during the consultative process.
Unite regional industrial organiser Sean McKeever said: “The news is a huge blow to the community in south Tyrone on the back of the redundancies at Powerscreen.
“The company has 35 million bricks stockpiled and has no further storage capacity and few orders are coming in so we have accepted that the only thing left for us to do is negotiate a redundancy package.”
Last April, Tyrone Brick closed one of its production facilities on the Cookstown Road resulting in 20 job losses.
The news is the latest in a series of employment blows for Co Tyrone and comes just weeks after manufacturing firm Powerscreen announced 90 redundancies at its Coalisland Road factory.
It has also emerged that more than 100 jobs are to be lost with the closure of six Principles stores in Northern Ireland.
Lee Manning of Deloitte and joint administrator said: “Given current market conditions, we have been unable to find a suitable buyer to take the business on as a going concern. Unfortunately there will be significant redundancies over the coming weeks.”
By Lindsay Fergus