CHESHIRE chemical company Brunner Mond fell sharply into the red last year, its latest accounts have revealed.
The Northwich-based firm, which is owned by Jaguar Land Rover parent group Tata, reported a 6.7% increase in top line sales for the year to March 31 2009 of £135m, up from £126.6m in the previous year. However, £26.1m of costs associated with the closure of a loss-making plant in The Netherlands pushed the company into a £14.22m pre-tax loss, compared with a £10.7m pre-tax profit in 2008.
Brunner Mond BV had incurred losses and was forecast to suffer future trading losses the accounts, signed off by chief executive John Kerrigan, confirmed.
It is understood high energy costs contributed to the decision to close the Dutch plant.
The company has now taken steps to reduce its exposure to fluctuating energy prices by applying to the Department for Energy and Climate Change for permission to build a sustainable energy plant at Lostock which it says will create 50 new jobs within the plant, about 350 in related services, while protecting the 500 staff already employed at Northwich.
Mr Kerrigan said it was hoped that the Government would come to a decision sometime within the next 12 months.
He added that, if the green light is given, it is expected that construction will start in 2012 and the plant will be operational in 2014 or 2015.
Brunner Mond manufactures a range of materials, including soda ash, which are used in glass, detergents, toothpaste and other products.
