Jobs at risk after British Ceramic Tile deal

A 30-day consultation process is under way as continued weak performance of the UK and export building material sectors will mean both companies, which employ more than 400 staff between them, have to streamline operations.

It has not been decided which company will bear the brunt of any possible job losses, with production, sales and administration staff at the Newton Abbot company all under threat, a spokesman told Insider.

"If redundancies do have to be made then the total number across both sites will be less than 100 employees," the company said.

BCT, which opened a new 40m factory in 2009, cut 83 jobs in July, from a workforce of 380, as a result of falling demand and a new 2m kiln, which helped to streamline processes.

Chief executive Matthew Gazzard said: "Any loss of British jobs, particularly in these tough times, is extremely regrettable and we aim to ensure the process is as smooth and fair as possible."

It was claimed the deal with Ceramic Prints will create one of the largest tile companies in the UK.

Turnover at BCT increased by 3.5m to 25.9m for the year to 30 November 2010, according to the last set of accounts filed.

However, the company's pre-tax losses widened to 12.2m, compared with 11.8m in 2009, as the fall in new housing construction since 2008 led to reduced demand for tiles.

Ceramic Prints, which was founded in 1983 in West Yorkshire by Tony Taylor, imports and distributes tile, stone and glass decorative products from its 150,000 sq ft distribution centre in Brighouse.

The enlarged business will be dual-sited in Devon and Brighouse.

Gazzard added: "We bring manufacturing scale and Ceramic Prints brings additional product, marketing and supply chain experience, as well as much-valued customers and suppliers.

"The newly enlarged company now places us in a very strong position from which we can better service customers both in the UK and abroad."

Tony Taylor will stay with the group as commercial director and will assume full responsibility for all aspects of sales and marketing, product management and design.