Kelvion accused of “betrayal” as Fareham plant closes
5th March 2025
UK: The Unite union has accused Kelvion of a betrayal of its UK workers after the German heat exchanger manufacturer ceased production at its Fareham factory last week.
In September, Kelvion announced the closure of the former Searle plant with production being integrated into Kelvion’s manufacturing facility in Świebodzice, Poland. The restructuring costs are expected to be around £8.4m.
According to Unite, one of the UK’s largest trade unions, the closure resulted in the loss of 150 jobs. A small number of workers in the research and development and sales departments remain at the site. Formal consultations with staff directly affected were carried out from September last year. Redundancies started in December and will continue until June.
“Ending production at the site is nothing short of a betrayal of these workers by Kelvion,” commented Unite regional officer Malcolm Bonnett. “It brings to an end a proud 100-year-old history of manufacturing and will significantly impact the local economy.”
Kelvion said that the decision had been taken following extensive planning and consultation and was committed to taking all necessary measures to ensure an orderly relocation of the Fareham site and to minimise the impact on its employees, customers and suppliers.
Accounts for Kelvion UK for the 2023 calendar year show a 6% increase in turnover to £39.5m and a 50% increase in gross profit to £5.7m. This reduced losses after tax from just over £2m in 2022 to £488,000 in 2023.
Originally founded in 1921 by Charles Searle as a car radiator manufacturer, the business became a famous British refrigeration name as the Searle Manufacturing Company.
It had transitioned to refrigeration in the 1950s, manufacturing and marketing refrigeration equipment throughout Europe and Africa under licence from Dunham-Bush. The 21-acre site in Newgate Lane, Fareham, was purchased in 1957.
Searle had a number of owners over the years, including Hall-Thermotank, Prestcold and Suter, becoming GEA Searle under the GEA group in 2008.
Last month, Kelvion’s owners, the private equity firm Triton Partners, was reported to be considering a sale of Kelvion in a deal that could be valued at over €2bn.
Related stories:
Kelvion to cease production in Fareham – 13 September 2024
UK: Heat exchanger product manufacturer Kelvion is to cease manufacturing at its UK factory in Fareham, bringing to an end 67 years of refrigeration production at the site. Read more…
