Philips to close only UK factory next year with potential loss of more than 400 jobs

Philips has said it is to close its only UK factory next year, potentially cutting more than 400 jobs as part of a push to reduce its manufacturing sites worldwide.

The Dutch company hopes to reduce the number of global sites from 50 to 30.

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Philips' announcement did not specifically reference Brexit, but said: "As a company with global operations, Philips needs to pro-actively mitigate the potential impact of various ongoing geopolitical challenges, including uncertainties and possible obstructions that may affect its manufacturing operations".

The move comes months after global chief executive Frans Van Houten saying that a no-deal or hard Brexit would hit production at the plant, and without a customs union the company “would need to rethink our manufacturing footprint”.

The factory in Glemsford, Suffolk, manufactures babycare products which are predominantly exported to other European countries.

Philips said almost all the plant’s work would shift across to a plant in the Netherlands which employs around 2,000 workers at the moment.

The firm said it will work closely with the impacted employees, social partners and other stakeholders on next steps.

"“I recognise that our proposed plan will have a profound impact on our colleagues working at the Glemsford site, and our manufacturing presence in the UK," said Neil Mesher, chief executive of Philips’ UK business.

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“We have announced the proposal after careful consideration, and over the next period, we will work closely with the impacted colleagues on next steps.

“The UK is an important market for us, and we will continue to invest in our commercial organization and innovation programmes in the country.”