A closure-bound Dundee factory has played a major role in the organisation’s success, contributing to a doubling of sales to £46 million.
A business leader in the city described the situation with Johnson Matthey Battery Systems as “a real shame” given evidence that it was performing well and had good prospects.
Johnson Matthey is shutting its battery division in Dundee as it is too far from the hub of the UK motor industry in the English Midlands. The division is being moved to Milton Keynes.
The former Axeon plant at Wester Gourdie which employed 50 staff was not a failing business, however.
In its third quarter trading update published yesterday covering the closure decision period, Johnson Matthey reported overall sales for continuing businesses were 3% ahead at £736m.
The new businesses division including Johnson Matthey Battery Systems in Dundee made “good progress,” raising its sales from £23m to £46m.
The report continued: “The division benefited from the contribution of the recently acquired battery materials and atmosphere control technologies businesses.
“The operating loss for the division as a whole reduced steadily, in line with our expectations for the full year.”
The UK-based sustainable technologies company said long-term growth drivers for the group’s technologies remain robust, and Johnson Matthey “is well placed to create value as they develop”.
In 2012 Johnson Matthey paid £40m for Axeon Power, which had been involved in a number of projects for major car manufacturers including providing the battery power for the electric McLaren P1 hypercar.
The new owners invested further with the ambition of developing a broad portfolio of battery materials and products within the new businesses’ division.
Last year the group said it had not expected the Dundee-related operation to make a profit in the first few years, but they did expect it to break even excluding acquisition costs in 2015-16.
Alison Henderson, chief executive of Dundee and Angus Chamber of Commerce, said: “It is a real shame that the Dundee business is closing when it would appear to have strong sales and continuing business streams and had a sustained good performance over the last couple of years.
“This is an operation with good resources, staff and prospects that has received investment, and it is a shame that this commitment has not been followed through.”