Nortek Global has announced that the Eaton Williams business it acquired last year will close for good on November 30, following disappointing profitability.
The firm said the 80-year-old company closed its doors and ceased production at its Edenbridge and Stoke sites on September 30 and that all employees will leave the business on November 30. A new smaller facility will remain open in Tonbridge close to the current Edenbridge site.
Distribution and manufacturing will move to the West Midlands, to Nortek’s manufacturing plant in Brierley Hill for Process Cooling and VAPAC sales. VAPAC production will continue in Poland as usual. The VAPAC and ServerCool brands will become part of the Nortek family alongside AmbiRad, Reznor, Benson, Airbloc, and Nordair Niche, the firm said.
It is anticipated there has been a total of 110 job losses and approximately 20 employees have transferred to roles within Nortek, the company said. A number of employees have transferred to other business units under TUPE and have taken employment in alternative departments within Nortek Global HVAC (UK).
Eaton Williams became part of Nortek Global HVAC (UK) in 2015 and the new owner sought to improve operation costs and financial performance. The firm said, “While losses have improved since the transition, the business continues to fall short in both sales and profit, making it difficult to continue as a limited company.”
Simon Parker, vice president and general manager, Nortek Global HVAC Europe, said, “It is with regret and despite every effort over the last 18 months the Eaton-Williams Group Ltd business will close on November 30. The leadership team and employees both at Eaton Williams and Nortek Global HVAC UK have worked exceptionally hard to turn the business around but the losses became unsustainable. I am pleased to say that two of the product lines VAPAC and Process Cooling will transfer to Nortek Global HVAC Ltd together with approximately 20 employees. The remaining employees are being made redundant and will receive full outplacement support. Many of the employees have considerable service and we wish to thank them for their support during this difficult time. The VAPAC and ServerCool businesses have a very positive future and we hope their growth will serve as a legacy to the Eaton Williams business.”
Content for the European Spotlight is provided courtesy of Refrigeration and Air Conditioning Magazine, London. For more information, visit www.racplus.com.
Publication date: 11/7/2016
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