Under-fire Rakon closes UK operations plant

Fresh being publicly censured and fined $30,000 by the NZ Markets Disciplinary Tribunal, under-fire Rakon has confirmed its decision to close the company’s UK Lincoln-based plant.

Following Techday reports of Rakon’s intention to enter consultation for a proposed closure of its UK operations, after a collective consultation with Rakon UK employee representatives and the board, a decision has now been reached.

As a result, the company will now enter a period of individual consultation for those Rakon UK positions deemed at risk. The outcomes of the individual consultations will determine the timeline for the proposed closure.

“The decision to close the Lincoln, UK plant follows a review by the “Board” determining that duplicate overhead structures and manufacturing capability exists between the Lincoln and New Zealand operations,” an official company release states.

“The proposal is for a full closure of the plant, with the manufacturing of products to be shifted to Rakon’s New Zealand plant.

“Rakon will continue to maintain a research & development centre in the UK, based at Harlow.”

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