Econyl fibre producer Aquafil is proposing to close its UK production plant.
The £588m turnover Italian company says its Kilbirnie, Ayrshire factory has not made a profit for five years and has faced huge increases in costs.
The company has begun a consultation period with the plant’s 40 employees.
Aquafil has 19 other manufacturing sites across the world.
Aquafil describes the factory as ‘a perfect logistical base to supply customers in the United Kingdom and other Northern European countries.’
‘Covid and Brexit have brought about challenging trading conditions in the UK. In this most recent recession, Aquafil UK is finding increasingly difficult to fulfil its planned capacity through existing clients. This has led to management taking the decision to lower our cash-flow prices, subsequent falling gross profit margins and problems,’ says a statement.
‘Since 2019 we have operated at a loss due to increase in power costs, (pro-rata increase of 100% since 2019); increase in Labour costs (pro-rata increase of 18% since 2019) and an increase in raw material costs (pro-rata increase of 30% since 2019).
‘We have had to consider how we can reduce our overhead costs and consider the viability of a site that has continued to make losses for five years and further losses are unsustainable. We therefore propose to close the plant.’
Aquafil bought the factory in 2014.
It is one of the largest producers of nylon and is the largest flooring textile producer.
It launched Econyl in 2011, regenerating Nylon 6 waste, including recovered fishing nets.
The company lists 51 companies using Econyl including Associated Weavers, Tom Dixon, Zanotta, Mercedes-Benz, Tarkett, Pottery Barn, Object Carpet and BMW.
