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China clay cutbacks hit West Country
Page 7
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HAULIERS IN Devon and Cornwall face significant cutbacks in demand from the china clay industry following a rationalisation programme by its main operator.
French-owned Imerys blames soaring energy costs for the reorganisation, which will cost 800 jobs. Steve Cudmore, group manager of St Austell-based MMC Group, says the announcement will affect every haulier in the sector,particularly owner-drivers. "We're one of their main hauliers. We've got three new MAN units coming in on 1 August on that contract and they are 160,000 to 170,000 each.'
He does not predict any redundancies at MMC in the short term and believes one of the biggest casualties could be Imerys' in-house fleet.
Hondray Stocks, MD of Stocks & Son, agrees. "I think [Imerys] had 12 lorries about five years ago and they're now down to six. I think [the fleet] will be gone in 12 months. I think they will do it on a spot-hire basis."
He adds that up to three vehicles in his 22-strong fleet deliver china clay; aggregates and asphalt account for most of the work.
lmerys says most of the changes will not take place until the autumn of 2007. Some of its china clay production is being transferred to Brazil.