Insulation and roofing group SIG has said that it will cut further jobs in the UK and mainland Europe to reduce costs in the face of tough trading conditions.
The group said it was pressing ahead with a range of new cost-cutting measures, which include branch closures and redundancies across its UK and Ireland operations, an additional 100 job losses in Germany, 30 in France and rationalisation and integration of its Polish operations into a single entity, with an initial reduction of 40 staff.
SIG believes the measures will increase annual savings to £27 million. “It is clear that H1 will be exceptionally difficult and that trading conditions will remain challenging for the foreseeable future. In this context, having strengthened the balance sheet the group will continue to run the business tightly through the remainder of 2009, focusing on maximising revenues and cash generation whilst continuing to realign the cost base to the changing market circumstances,” SIG said in a statement.
The company said total sales for the year to May 12 were down 13.3 per cent, while like-for-like sales in the UK and Ireland, which account for 50 per cent of SIG’s revenue, were down 23.5 per cent.