Sandvik Construction will cease production at its Hearthcote Road site by early 2015 as part of a major reorganisation of its UK operations, according to local newspaper reports.

Over the next 12 months the firm will relocate its Swadlincote operation to its Northern Ireland plant in Ballygawley.

A total of 360 jobs will be affected in Swadlincote, of which 160 will be moved to Ballygawley.

Managing director Terry Allison said the firm’s two factories had been running at 50 per cent capacity as a result of the economic downturn.

He said: “This is neither efficient nor sustainable. In order to stay competitive, we propose moving all our production onto the Ballygawley site, which is the right size to meet both the current and anticipated demand for our mobile crushers and screeners.”

Sandvik will still have offices in Swadlincote, for support, sourcing, marketing and aftermarket departments.

The company is in discussions with the Unite union who represent many of the workers in Swadlincote.   Sandvik has pledged to make support measures available to all those affected by the decision.

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