Engineering news
(Photo: Chris Allen/Wikipedia)
The UK's last independent coke works, which is located near Barnsley, is to close this month - ending 130 years of production - after failing to weather competition from cheaper Chinese rivals.
Owner Hargreaves Services confirmed the closure plan after announcing in October that it would consult the 130-strong workforce about plans to close the plant.
The plant - which produces 200,000 tonnes of coke per year destined for use in glass, detergents and steel manufacturing; and coke used for home heating - has been hit because Chinese coke suppliers are able to undercut international prices.
A statement issued by the firm added: “The decision to close Monckton, whilst regrettable for the staff and stakeholders, will reduce the level of risk and volatility currently created by the challenge of fluctuating demand and low commodity prices.
“We are pleased to note that the group faces these challenges with a very strong balance sheet and profitable and cash generative trading, services and transport operations.
“The board remains committed to developing the group’s surface mining operations and regards these assets as a source of significant long term value. The actions taken to maintain the maximum amount of operational flexibility around the mining business will ensure that the group is well placed to ride out the current challenges presented by low international coal prices and quickly benefit from any improvement."
The company pledged to look for alternative employment opportunities for staff, both within the wider company and externally.
It had been expected to make a profit of £2 million in the current financial year to May, but the company said the outlook beyond this year was ''very poor'' given current market prices.
Hargreaves employs 2,700 people in operations ranging from the importing of coal and coke to bulk haulage.
Last year it closed the Maltby coal mine, near Rotherham, although it still has nine surface mines, including seven in Scotland.
It said that surface mining operations were performing well, but warned that 2016 forward coal prices have fallen by a further £4 per tonne in the last three months. Shares fell by more than 13%.