From the Lancashire Evening Telegraph, first published Thursday 27th Aug 1998.
THE district's economy has been dealt a severe blow with the announcement of 275 job losses at Forbo Lancaster. Management at the wallcoverings factory at Lune Mills, which in its heyday employed more than 3,000 people, blamed the massive redundancies on a "fiercely competitive market." This brings the recent number of job losses in the area to 355 after Imperial Home Decor (formerly Storeys) last week announced 80 job cuts at its factory on the White Lund.
Workers at Forbo Lancaster were said to be stunned by the announcement but were unwilling to speak out publicly to protect their prospects of keeping their jobs.
One employee told the Citizen: "We knew times were tough and that some jobs would be lost. There had even been rumours about the whole place closing. At the worst we thought it might be around 100 jobs going but this figure has left us stunned. It's not just 275 workers, it's 275 families that will be affected."
In a prepared statement, Forbo Lancaster's managing director, Martin Kellaway, said: "The company has faced very difficult market conditions not only in the UK but also in many of the world's major wallcovering markets. The company has been making significant losses and has continued to lose money in 1998. As a result of these difficulties the company has announced it would begin consultations with employee representatives about plans to cut up to 275 jobs at the Lune Mills Factory."
The depressing news was met with dismay from the district's political leaders.
Lancaster's MP Hilton Dawson described the company's job losses as "devastating and very serious for the local economy" and council leader, Stanley Henig, said: "This news is a savage blow for the people of Lancaster. On behalf of the council I can only express my sympathy for those employees who have been made redundant. and the council will do all it can to assist both employees and the company in what is a very difficult time."
Forbo Lancaster, formerly known as Nairn Williamsons, was once the largest employer in the area with more than 3,000 workers from the local community.
Following the job losses there will be just 250 employees at the Lune Mills site but boss Mr Kellaway has assured Hilton Dawson that the company was committed to manufacturing in Lancaster.
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