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Marshalls sales fall 6% as cost cutting increases

Sales at landscaping products people Marshalls fell by 6% to £378m in the year to December 31 2008.
Domestic market sales were 15% down, whilst public sector and commercial sales inched ahead by 1%.

The company now plan to further cut costs and are looking at the possible closure of two concrete manufacturing plants and the scaling back of some jobs concerned with the managed installations and display centres. Consultations have started and some 135 jobs are likely to be at risk. The facilities at Cannock and Sawley were closed in July with the loss of 140 jobs.

David Sarti, Marshalls’ chief operating officer, said: “Marshalls has taken the decision to commence such a consultation process after very careful consideration.

“While regrettable, it is considered an essential step in ensuring that overall numbers employed across the group and the best use of our regional manufacturing capability and distribution network are closely aligned with current market demand for our products.”

Last month the company announced consultations had begun over 20 jobs at the head office site in Elland.

The works closure cost in 2008 is anticipated to be around £12m. Once these changes are complete the remaining network of manufacturing sites is expected to provide the capability to meet expected medium term demand.

About Fiona Russell-Horne

Fiona Russell-Horne
Group Managing Editor across the BMJ portfolio.

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