Hexpol restructuring UK business amid ‘extremely volatile’ environment

Manchester, UK – Hexpol AB is in consultation with its workforce for a planned restructuring of its UK operations, the Swedish compounder has confirmed to ERJ.

In a circular issued 16 Dec, Hexpol’s UK subsidiary Berwin Industrial Polymers informed customers about plans to combine the operations of its two production sites in England.

“Berwin are proposing to combine its Lydney operation, carried out by Berwin Industrial Polymers Ltd with its Manchester operation, carried out by Berwin Rubber Company Ltd.,” the circular said. 

The proposal would mean the transfer of the business to Manchester operation, it added.

Berwin said the decision was made due to the past two years proving “extremely volatile” in the UK compounding businesses.

The market, Berwin said, is facing “unprecedented challenges.”

Hexpol did not provide further details about the restructuring, as consultation process with workforce is currently ongoing. 

The Swedish group acquired Manchester-based compounder Berwin Group for £25 million (€32 million) in 2016. 

At the time, Berwin said it employed over 200 people at UK sites in Dukinfield, Manchester and Lydney, with annual sales of around £40 million. 

The company’s compounds are used in tires, automotive seals and hoses and for applications in the aerospace, oil & gas, consumer goods and footwear industries.