250 jobs at risk at Doncaster manufacturer as pandemic hits construction

The plastic pipe maker said it is entering a consultation period with employees which could lead to the loss of about 250 jobs or eight per cent of the workforce.

The firm said it had to review ‘manning levels’ and cost base due a drop-off building, including an anticipated 20 per cent fall in residential new build compared to last year.

The FTSE 250 company makes pipes for drainage, plumbing, water management, cables, heating and ventilation. It employs 3,064 and turnover last year was £447.6m.

The announcement comes after Doncaster rail firm Wabtec announced up to 450 job losses - with unions fearing the entire plant could close with the loss of 760 jobs.

Polypipe said sales had improved post lockdown, with June 2020 revenues 30 per cent below last year, compared to 66 per cent below in April.

A spokesman said: “However, at this stage we remain cautious as to whether this performance will be sustained into the autumn and winter.

“We are currently manufacturing at all main sites at varying levels of capacity utilisation, and have 25 per cent of our workforce furloughed, compared to 61 per cent at the height of the crisis.

“Medium-term economic and industry forecasts show a significant impact from the Covid-19 outbreak on the wider UK economy and specifically the UK construction industry.”

The Construction Products Association says residential new build demand next year is likely to be 20 per cent lower than 2019 and commercial demand 18 per cent lower than 2019, even with recovery in the second half of 2021.

The spokesman added: “In light of this medium-term outlook, we are taking regretable but necessary steps to adjust our manning levels and cost base to reflect this level of demand.

“Unfortunately, it means that we are entering a consultation period with our employees to review these steps, which if actioned in full, will lead to the loss of approximately 250 jobs or eight per cent of the workforce.”