MOUNT VERNON — Rolls-Royce recently announced the closing of the company’s plant in Liverpool, England. This move could have implications for the local plant.
The company cited the high cost of operating the plant, capacity problems relating to fluctuating work volumes and an adverse exchange rate with the dollar as the causes behind the closing. The company conducts most of its transactions in dollars.
In November, the company announced plans to enter into formal talks with employee representatives regarding a proposal to close the Liverpool plant and concentrate its energy packaging operations out of a single U.S. plant, the plant in Mount Vernon. This announcement followed nearly three months of informal talks.
Company spokesman Gary Hyman said the company rejected an alternate business proposal by employees because it left too much of a financial gap. He said the company plans to begin layoffs at the Liverpool plant in April and complete the layoffs around October. The plan is to close the facility in early 2009. He said the plant has just over 200 employees.
According to an article that appeared this week in the Liverpool Daily Post, the Mount Vernon Rolls-Royce plant will take the work from the Liverpool plant.
Hyman said he cannot say at this point whether or not any of these jobs will be moved to Mount Vernon. Asked what the England plant closing will mean for the Mount Vernon plant, he said it has been a good year for Mount Vernon Energy.
“That is what’s good for Mount Vernon,” he said.
According to the Liverpool Daily Post, the workers are fighting the future closing of the plant and planning a march on Saturday.
