As much as 50 jobs might be misplaced at Leicestershire bike maker Triumph underneath plans to relocate mass manufacturing to Thailand.
Staff on the Hinckley manufacturing facility have been advised the enterprise is “realigning” operations underneath world ambitions to take an even bigger chunk of the Asian market.
Triumph stated that whereas mainstream manufacturing would transfer to its existing plants in Thailand, Hinckley would turn into its world analysis and growth centre, resulting in greater than 20 new design engineer jobs.
A letter to workers from chief executive Nick Bloor stated the corporate was now consulting about UK job losses in areas similar to its meeting line, machine store, weld store and in IT, in addition to a brand new state-of-the-art paint store which solely opened a few years in the past.
It stated: “While we admire that this can be tough for these affected, please be assured that we’ll do all the pieces we will to help you.”
A spokesman for the enterprise stated between 6-7,000 of the 65,000-or so bikes it was making annually are produced within the UK.
He stated there would nonetheless be manufacturing in Hinckley, however primarily of extra area of interest, bespoke bikes, taking the quantity produced there all the way down to round four,500.
In a press release, Mr Bloor stated: “We are actually getting ready for Triumph’s subsequent wave of strategic progress.
“We need to maximise the expansion alternative for the model globally, notably within the Asian markets.
“Because of this we’re rising our design assets right here within the UK, and focusing our mass manufacturing capabilities in Thailand.
“There’ll nonetheless be manufacturing functionality within the UK however the function of our facility in Hinckley can be reconfigured to allow us to create a extra versatile and high-value functionality.”
The corporate added: “The transfer to a extra specialist manufacturing facility does imply, nonetheless, that there can be between 40 and 50 redundancies from the corporate’s manufacturing workforce within the UK.”
Solely final month Triumph kickstarted a brand new enterprise with Bajaj Group – one of many greatest corporations in India – which can finally see a brand new vary for the Asian market with a beginning value of round £2,000.
The businesses are engaged on a variety of mid-capacity bikes which can give Triumph a brand new entry level to high-volume, rising markets throughout Asia.
The brand new vary can be badged Triumph however constructed by Bajaj and can see a brand new engine and bike platform constructed within the mid-capacity, 200cc-750cc vary.
Triumph, which dates again to 1902, now has six factories all over the world, together with the worldwide headquarters in Hinckley.
It’s the UK’s greatest bike producer, and employs round 2,000 folks.
Turnover grew to £529.5 million within the yr to final June, when it made 60,131 bikes .
Pre-tax earnings rose from £9 million to £9.5 million, whereas the quantity spent creating new fashions rose from £36 million to £43.four million.
The enterprise stated Hinckley can be often known as its “Centre of Excellence for Analysis and Improvement”, resulting in “greater than” 20 new design engineer roles.
They might assist with the event of extra new fashions over the subsequent decade, and help the deliberate worldwide progress.
The plans contain organising a brand new 16,000 sq ft design centre and a brand new meeting line to make it simpler to construct specialist prototype bikes and its high-end bespoke bikes similar to its Triumph Manufacturing unit Customized bikes.
The Thai crops will turn into its “Centre of Excellence for Manufacturing”.
Within the final 5 years, Triumph has elevated its design engineering headcount by 40 per cent and its funding in new mannequin growth by 80 per cent.
It stated that elevated funding in R&D had allowed it to proceed to strengthen its product vary, launching 14 new bikes within the final two years such because the Rocket III R and GT, the restricted version Moto2 Daytona 765 and new Tiger 900 and Avenue Triple ranges.