Company 'commits' to town despite 100 job losses

The company designs and makes variable speed drives which control motors for cars and other machines

A company that announced nearly 100 job losses last month has said it remains "committed" to the town where it started out more than 50 years ago.

Specialist manufacturer Nidec Control Techniques, which began in Newtown, Powys, in 1973, now employs more than 800 people on two sites.

That makes it one of the largest private sector employers in mid Wales.

But last month the company said the “fragility of the global supply chain” meant it had to make changes which could lead to up to 98 job losses in Newtown. 

Nidec's vice president of global operations Martyn Cray says demand is falling globally

The company designs and manufactures variable speed drives which control motors for a range of uses including the car industry, lifts and the food and drink sector.

In 2017 the company was bought by Japan's Nidec corporation, which operates in more than 40 countries.

Martyn Cray, the company’s vice president of global operations, said it was operating in a "very competitive market".

He said a post-Covid spike in demand had fallen "not just in Newtown, but globally" leading to the announcement of the job losses.

Mr Cray said a consultation with staff had already begun and will be completed before Easter.

The Newtown site is the company’s largest manufacturing plant and the firm is the world's biggest maker of speed drives.

Mr Cray said the 50 years that the firm had been in Newtown had seen it grow into a "high-class quality manufacturing facility".

“What's happening now is just a market readjustment," he said.

"Having our headquarters and our research and development centre here shows that we're committed to this area and committed to the people of Newtown," said Mr Cray. 

But local councillor David Selby said losing 98 jobs would have a big impact on a town the size of Newtown, with a population of about 11,000. 

Member of the Senedd Russell George says the news will "be very disappointing for the staff and some of those families involved"

Mr Selby, who is also Powys cabinet member for economic development, said the council would use its resources to help those affected by the cuts.  

Local Conservatives, Craig Williams MP and Russell George MS, met the company in January.

Mr George said the job losses were "disappointing news" and he was keen to get support from the UK and Welsh governments.

Concerns have also been raised by Liberal Democrat Jane Dodds and Labour's Eluned Morgan, both MSs for Mid and West Wales.

The Senedd was told that Welsh government's Economy Minister Vaughan Gething had asked officials "to continue to meet with the company, to offer employees support".