Production of tools moves overseas
Spear & Jackson plans to cut 60 jobs from its 140-strong workforce at the Atlas site in Sheffield partly because of increased material costs.
Employees have been informed of the plan and are in consultation over the potential loss of their jobs; they are being given the opportunity to put forward any suggestions that may change the proposal.
Neill Tools - Spear & Jackson's parent company - wants to shift production of wood saws, builders' tools and hand tools overseas while maintaining the manufacture of premium tools in Yorkshire.
Neill managing director Lee Wells cited rising costs for the decision and said the company had experienced significant increases over the last 18 months.
The company has conducted a review of its production strategy this month, which led to the conclusion that streamlining the workforce would provide it with the opportunity to adapt to global markets and increased costs.
"The company could not continue to absorb these increases and with the current global economic uncertainty, increasingly competitive market and improved quality standards from overseas competitors," Lee Wells told local paper the Sheffield Telegraph.
"We have found it difficult to pass the full impact of these increases on to our customers."