Historic Holwell Works plant set to close

The jobs of 161 people are now under threat at Saint-Gobain PAM UK, which manufactures over 300 products for clients in infrastructure, water, utilities and telecommunications sectors.

The company, which has started a period of consultation with staff and the GMB Union, plans to move manufacturing of its access covers and gratings products to its factory in France.

The plant has traditionally been one of the Melton area’s biggest employers since industrial processes began there back in 1881.

The news comes on the back of Asfordby Hill-based S&J European Haulage giving notice to appoint administrators, making the future of 80 jobs uncertain, and Arla Melton Mowbray Creamery deciding to review the future of their town centre dairy, where 60 people are employed.

In a statement on the planned closure, Alan Gwilliam, managing director of Saint-Gobain PAM UK, said: “It’s with great sadness we announce the proposed closure of our Holwell site in Melton Mowbray.

"Our business has had to contend with Brexit, Covid and considerable cost increases over the last few years.

"Despite the huge efforts from the Holwell team, the factory has become uncompetitive and with excess capacity within our European manufacturing footprint, the proposal to consolidate our manufacturing sites is the sensible solution.”

The firm’s French factory, at Blénod, has recently received an investment to reduce the carbon intensity in the production which will cut by half the carbon emissions of its products in future.

This appears to be the major reason for switching the work to France with customers wanting more environmentally-friendly products.

The company said it was aware of the impact closure would have on the Melton Mowbray community.

“We know this is a significant announcement that will affect many local people as well as the many employees of the site, the majority of whom are from the town,” added Mr Gwilliam.

"Holwell has been an important part of the town since 1881 and we know there are many local people with current and past ties to the plant.

"We will of course act with consideration and respect to all involved as we move through this uncertain time.”

The plant was visited by Mayor of Melton, Councillor Alan Hewson, in May 2022, to acknowledge the important part it has played in the Melton economy since the first furnace was tapped 143 years ago.

Employees cast ductile iron access covers and gratings for the highways and telecommunications industries for use all over the UK and as far afield as New Zealand and the Middle East.

There has been a succession of different owners over the years, including British Steel Corporation. Saint-Gobain PAM took it is over in 1985.

The consultation process will continue with staff and unions and with the time it would take to move production to France the Holwell Works plant is expected to stay open until December this year.