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Durham’s Hargreaves could cut 120 jobs at Monckton coke plant

Durham-based Hargreaves Services have begun a 45 day consultation period with 120 staff working at Monckton coke plant, following an issue of redundancy notices.

In the Group’s preliminary results statement, issued on 9 September 2014, the board confirmed its intention to review the future of Monckton, which continues to suffer from a reported period of unprecedented turmoil in European coke markets.

Whilst discussions apparently continue with key export customers, a significant change in both market conditions and customer demand would be required to secure the plant’s future.

Monckton continues to benefit in this financial year from a number of higher priced legacy contracts and was budgeted to make a profit of £2.0 million although the outlook beyond this year is very poor given current market prices.

If the decision is taken to proceed with closure, whilst the current year profit would be reduced to nil reflecting the cancellation and rescheduling of a number of customer contracts, the closure would result in the unwinding of significant working capital tied up in the business.

CEO of Hargreaves, Gordon Banham, said: “Hargreaves acquired Monckton in 2005.

“Whilst great progress has been made by the team in improving efficiency and environmental performance over the past ten years, the coke markets have become increasingly challenging for the business.

“I have worked closely with the management team and it is with great personal sadness that we find ourselves having to start this consultation process.”

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