TWENTY employees of Wellington firm Pritex, which has new owners, have been ‘placed at risk of redundancy.’

The company, which has a 240-workforce, was sold in May to Saint Gobain, an international company employing 180,000 employees in 67 countries.

On Monday, the managing director of Pritex, Gareth Jones, issued the following statement: “As reported in the national press, the last 12 months has been a difficult period for the core industries that Pritex supply and our customers have seen a reduction in demand for their products. Unfortunately, this has fed through and impacted Pritex.

“We have worked tirelessly to reduce our costs and win additional business during this time but, unfortunately, our successes have not been sufficient to offset the market downturn our customers have faced in the automotive, industrial and furniture/bedding sectors.

“Pritex has shown great resilience to navigate the challenges it has recently faced. However, as a result of these market conditions it is with much regret that 20 employees who make up our night shift have been placed at risk of redundancy.

“The very difficult decision to consider potential redundancies has only been taken following a full business review by the management team here in Wellington.

“Our priority now is to conduct a thorough consultation process, support our staff and identify any alternatives which might negate the need for redundances.” Alan Chapman, managing director of former owners Steinhoff UK Manufacturing Group, said in May: The decision to sell the business was made with the objective of finding Pritex the best new strategic partner that would fulfil its potential and support the next level of success and growth and in this regard, I am confident that Saint Gobain will be an excellent partner of choice for the business.

“Pritex has strong existing relationships with premier automotive and industrial customers and I am confident these will continue as the business looks to its future with new owners.

“A full site separation will take some time. This will include the creation of a new entrance through the Longforth Farm Estate.

“During this period Relyon will work wth the Pritex management team to ensure that there is a smooth transition to Pritex becoming entirely independent over the coming months.”

He added: “Pritex was borne out of the Relyon business 60 years ago and employees across both businesses have strong relationships and associations which I am sure will endure.”