Hundreds of jobs are at risk in Lincolnshire as Cummins Generator Technologies announce its Stamford plant is set to close.
The firm which employs around 500 people says despite investment and efforts to improve productivity, the factory remains uncompetitive and it is being forced to close its facility in Barnack Road and consolidate operations at its Ryhall Road plant.
A spokesman said: “This was a difficult decision for us to make. We recognise the impact that closing our Barnack Road facility will have, but despite extensive efforts we have sadly not be able to secure a sustainable future for the site.
“By undertaking this reorganisation we will be able to improve productivity, deliver greater value for our customers and ensure that our manufacturing operations remain sustainable.
“We remain committed to Stamford and believe our new centre of excellence will allow us to establish a deeper technical presence now, and for the long-term.”
They added that the business will be “actively working to support employees and the community during the transition”.
According to its latest accounts, it increased revenues to £579m from £525.4m in the year to 31 December 2016, while pre-tax profits rose from £36,761 in 2015 to £220,726.