A NEWTOWN manufacturer says an extended factory shutdown in the run up to Christmas has been caused by global issues following the Covid pandemic.

Powys based manufacturing company Control Techniques, whose global headquarters is in Newtown, has confirmed that it will be reducing its output in the run up to Christmas due to a downturn in demand.

As a result, workers at the company will be taking a week of additional leave during December, reportedly in order for the company to provide enough work for its staff. The company said half would be paid by the company, with the remainder to be taken as holiday or time in lieu. Unpaid leave will be taken only after "all other measures have been exhausted", the company said.

A spokesperson for Control Techniques, which is now owned by multinational firm Nidec, said: “In recent years, Control Techniques has seen significant growth. The growth has enabled us to invest heavily in our facilities around the world; expanding our manufacturing capacity to better serve our growing customer base.


“During this period of supply chain uncertainty, businesses have been forced to hold increased levels of safety stock to help them ride through the inevitable turbulence in supply.

“However, with product delivery times now at, or approaching, pre-pandemic levels customers are confident enough to use these safety inventory stocks that were accrued during the height of the supply chain crisis to fulfil their immediate need.

“This temporary phenomenon is being seen across the industrial manufacturing centre and is not constrained to Control Techniques or electrical drives manufacture.

“Considering the current situation, Control Techniques has unfortunately had to reduce manufacturing output levels due to this downturn in demand.”

One person who contacted the County Times about the planned extended shutdown said the announcement had caught many workers by surprise.

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Control Techniques added: “The decision to extend the factory Christmas shutdown period was taken after careful consultation with our Employee Action Group; with the financial impact of the closure on our employees being at the forefront of the discussion.

“Measures have been put in place to ensure that the impact is minimised, with any reduction in pay being spread out over the remainder of the financial year.”

Founded in 1973 as KTK in Newtown, the company is a leading manufacturer of AC and DC variable speed drives, servo drives and servo motors as well as power conversion technologies.

In 2017 Japanese electric motor manufacturer Nidec became Control Techniques parent company. The acquisition put Control Technologies in contact with 300 other companies, collectively employing over 110,000 people.