Philips announces closure of UK factory putting 430 jobs at risk, months after Brexit warning

Dutch electronics giant to shut Suffolk plant in 2020

In July, Philips warned that it would cut up to 500 jobs at the facility if the UK does not secure a favourable trade deal with the EU (Philips)

Philips is to close its factory at Glemsford in Suffolk and transfer operations to the Netherlands, putting 430 jobs at risk, amid continuing uncertainty around Brexit.

The Dutch multinational said the decision was part of a plan to reduce its number of manufacturing sites around the world and was not not directly related to the UK's departure from the EU.

In July, Philips warned that it would cut up to 500 jobs at the facility if the UK does not secure a favourable trade deal with the EU.

Phillips boss Frans van Houten underlined the point in October, saying that Brexit threatened Philips' presence in the UK and the country's position as a manufacturing hub. Philips expects production at its main plant in Glemsford, Suffolk to fall in the event of a hard Brexit.

“We are looking at a customs union as a minimum [requirement],” for a negotiated Brexit, Mr van Houten said at the time.

“If that were not to happen we would need to rethink our manufacturing footprint.”

Mr van Houten said he was concerned about the lack of progress on a deal between the UK and the EU and that a no-deal Brexit would jeopardise British manufacturing.

“As time passes and there is no solution I get increasingly worried that hereafter frictionless trade between the United Kingdom and European mainland could be at risk,” Mr van Houten told reporters after the company reported disappointing quarterly earnings.

The announcement comes less than 48 hours after Theresa May suffered a crushing defeat in the House of Commons on her Brexit deal.

Philips' Glemsford site manufactures products for the non-UK market, exports that will be put in jeopardy once the country leaves the EU single market. The factory will close in 2020, Philips said.

“I recognise that our proposed plan will have a profound impact on our colleagues working at the Glemsford site, and our manufacturing presence in the UK,” said Neil Mesher, chief executive of Philips UK & Ireland.

“We have announced the proposal after careful consideration, and over the next period, we will work closely with the impacted colleagues on next steps.

“Philips has a long, established history of serving customers within the UK, and we remain committed to them. The UK is an important market for us, and we will continue to invest in our commercial organisation and innovation programmes in the country.”