De La Rue

'We simply cannot afford to lose these jobs'

A Gateshead MP has called on the government to support workers in the region after De La Rue announced 260 jobs at its Team Valley site are at risk.

Earlier this month, the firm said it is to end banknote printing at its Gateshead plant.

Speaking in parliament yesterday, Liz Twist, Labour MP for Blaydon, said: "I want to know what the government is going to do to ensure jobs like these are retained in the North East.

"We simply cannot afford to lose them. These highly skilled, well-paid jobs will help stimulate our regional economy."

The Secretary of State for Business, Alok Sharma, said he was disappointed by the firm's move and added the government will support workers in the North East.

Stock image of £5 notes
Reuters

De La Rue shares down a fifth

Fivers
Reuters

Shares in the struggling banknote printer have had a torrid day.

They're down more than a fifth after slumping 35.70 to 139.50.

De La Rue has a 250-strong workforce at its plant in Gateshead in Tyne and Wear which suffered job losses in the summer after losing out on the UK passport contract last year.

The company also prints Bank of England banknotes at Debden, Essex, where it employs around 150 staff.

De La Rue's fate should send 'alarm bells ringing'

Unite national officer Louisa Bull has has her say on those troubles facing banknote printer De La Rue. She said:

The potentially precarious future of De La Rue, a major UK manufacturing company, should be ringing alarm bells across government. We have previously criticised the government's short-sighted and blinkered decision to award the printing of post-Brexit UK passports, worth £490m, to French-Dutch firm Gemalto as it seriously undermined the financial viability of the Gateshead operation.

De La Rue to suspend dividend payments

Banknotes
Getty Images

De La Rue plans to suspend dividend payments and review its business to cut costs, as its banknotes printing unit struggles with depressed margins amid stiff competition and growing popularity of digital payments.

The passport and banknotes printer said it expects adjusted profit between £20m and £25m for full year 2019-20.

The company had warned in October that annual profit would be below market expectations.

De La Rue shares slump a fifth

Money
Getty Images

Shares in struggling passport and banknote maker De La Rue have slumped 20.96%, or 39.20 to 147.80 this morning.

Its warning of "significantly lower" profits have spooked the market.

Profit woes at banknote printer

BBC Scotland business editor

Local MP tells the commons De La Rue job cuts are 'devastating'

BBC Look North

North East and Cumbria

The Government's being urged to intervene after the threat of more redundancies at the De La Rue printing plant in Gateshead.

Last year 100 jobs were lost when the company lost the contract to print British passports to a French-Dutch rival.

Last month it was announced a further 170 jobs could go.

The Labour MP for Blaydon - Liz Twist - told the Commons that it was "devastating" and seemed unfair.

De La Rue
BBC