1. ITV Report

Almost 200 jobs to go at Birtley-based AEI Cables

AEI Cables has been manufacturing cables for 170 years. Photo: ITV News

Birtley-based AEI Cables has announced it is unable to continue manufacturing and will continue as a sales-only business.

The company, which has been making cables for 170 years, said it will be serving a notice of redundancy on a number of employees and is proposing to enter a Company Voluntary Arrangement (CVA).

AEI Cables, had been losing money for some time and it became necessary for the manufacturer to either find a buyer or cease production.

The majority of the 198 employees will leave on or before Friday, January 6.

As part of a phased closure, approximately 40 employees will continue working until the beginning of March.

Thirteen sales and administration staff will stay on working for the company after September at a location to be decided.

The company has been losing money for some time and, following careful consideration of other options to avoid or reduce the number of potential redundancies, it was necessary to either find a buyer or to cease production.

“Despite significant investment in the plant over the last two-and-a-half years, profitable production levels have not been achieved. With unviable output levels and without a buyer, we deeply regret that manufacturing operations will have to cease. We will be providing all the advice and guidance we can to those being made redundant.”

– AEI Spokesperson

In the CVA, employees can claim statutory redundancy pay from the Government’s Redundancy Payments Office, while the company can pay creditors over a fixed period in accordance with the terms of the CVA. If creditors agree the CVA, the company can continue trading in the meantime.