Cemex can’t rule out redundancies in Rugby

General view of the former Gala Bingo site & the present site of Cemex, Everux Way, which are both to be demolished to make way for a new supermarket.
General view of the former Gala Bingo site & the present site of Cemex, Everux Way, which are both to be demolished to make way for a new supermarket.

CEMEX has stated that job losses are possible in Rugby, but it cannot yet say how many posts could be at risk here.

The multinational firm, which employs 500 people in Rugby, is planning to cut its worldwide work force by six per cent.

The business has said it is hoping to free up £245m-worth of cashflow by the end of 2012 through cutting costs and improving under-performing businesses.

A spokesman said: “Cemex is fully committed to the UK and will continue to be a leading provider of building materials to construction customers across the country.

“The transformation programme Cemex has embarked upon is all about the de-layering of our organisation, focusing more closely on our customers and markets, and the re-engineering of our company to make it more agile, flexible and entrepreneurial.”

He added: “It is possible that this could result is some job losses in the UK.

However, the impact will be on the back of careful analysis and aimed at bringing about a new, leaner and evolutionary structure.”

The company, which employs about 46,500 people worldwide, has said it is seeking cost savings of about £150m this year.

It also expects to sell about £55m in assets that it will use to reduce debt.

According to news agency Reuters Cemex has been struggling with its debt load after buying Australian rival Rinker just before the economic downturn.

According to its website the company contribute £25m to Rugby’s economy.