Carpet maker Victoria is looking at axing 66 jobs in Worcestershire as it moves production to its two other manufacturing sites in Cleckheaton, West Yorkshire and Newport, Wales.
The firm said the 66 jobs will not be transferred to Yorkshire and Wales and it intends to turn its manufacturing site at Kidderminster in Worcestershire into a distribution warehouse. It anticipates that more jobs will be created in Kidderminster once the warehouse is set up.
Victoria said that due to rapid growth and significant demand for its products, it is reorganising its manufacturing footprint and logistics operations to increase production capacity and improve service levels for customers.
The firm said that chief executive Philippe Hamers reviewed the UK manufacturing footprint with the goal of increasing capacity while improving production efficiency.
In a trading update Victoria said it is trading well and the integration of recent acquisitions in the UK, the Netherlands, and Australia, has ensured that the group’s underlying pre-tax profits will be well ahead of last year.
The group said it is confident of meeting market expectations for the financial year ending in March 2018.
Victoria said it is well placed for further growth given its expanding international operations, which now represent over a third of the business.
It added that reshaping the group will achieve “meaningful“ cost and margin synergies, freeing up capital for further acquisitions.
The group’s executive chairman Geoff Wilding said: “The successful growth of Victoria has enabled the group to reassess how best to utilise its manufacturing and logistics capabilities.
“By reorganising our manufacturing and logistics operations, we will continue to grow Victoria’s earnings per share and free cash flow.