Johnson Matthey poised to close Meir plant

Johnson Matthey, the precious metals and chemicals group, is considering closing its colours and coatings site in Meir, north Staffordshire, which makes products for the tableware market.

The move, which threatens more than 300 jobs, is the result of "continuing decline in demand from the tableware sector and a need to rationalise production capacity".

The company's products go into fine china manufacture, supplying gold trim, glazes and other decoration. Johnson Matthey will still have five other plants in the Staffordshire area if Meir is shut and production would be shifted to these. Final production runs would take place in late summer and talks have begun with those workers affected. There should be no disruption to fulfilling customer orders, the company said.

The colours and coatings business also supplies the glassware and tile industries, which are faring better than china. The division, which employs 1,900 people, is considered non-core by analysts.

Johnson Matthey said the proposed closure would result in a charge of £24m. "However, after the sale of assets, the rationalisation should be cash positive for the division," it added. Savings of some £7m a year would follow.