Tachograph firm Stoneridge Electronics has confirmed Dundee jobs will be lost as part of a company restructure.
Last month the firm announced a “realignment” of its aftermarket business based in Dundee, with production and logistic operations to be moved to another European site.
An 8-K filing with the United States Securities and Exchange Commission — used to notify investors in US-listed companies of important events — stated the restructure will result in the production being phased-out in Dundee and “certain employee terminations”.
The document reveals Stoneridge estimates that between $2.6 million and $3.2m will be spent on the restructure, referred to internally as the Tachograph Realignment.
Production of tachographs and tachograph accessories will cease in Dundee and the internal sales department will be replaced by a sales distribution model.
The investors’ document states: “The estimated costs for the Tachograph Realignment include employee severance and termination costs, contract terminations costs, excess and obsolete inventory write-offs, the non-cash write-off of intangible assets, professional fees and the non-cash write-off of impaired fixed assets.
“The estimated total cost of the Tachograph Realignment is between $2.6 and $3.2 million and will be incurred through 2020.”
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The company declined to provide information about how many jobs are at risk or provide further reassurance that the Dundee operation – which can trace its roots in the city back 70 years – would definitely continue. Currently around 60 Stoneridge staff work from Dundee.
It is understood that employees have been told Stoneridge does not plan to withdraw from Dundee. The city site at Claverhouse Industrial Estate also contains design and software roles.
Stoneridge said the Dundee decision reflected its business strategy to “align with connectivity megatrends that are expected to reshape product needs as the customers of the future will expect a seamless, wireless data management system”.
“The company believes that there is an opportunity for the tachograph function as part of a connected, secure and online driver information system,” the 8-K filing added.
“The company’s focus will be on streamlining the product portfolio while maintaining regulatory compliance products to support customers’ current needs.”
Accounts filed in September showed sales at Stoneridge Electronics rose from £16 million to £17.8m for the year ending December 31 with pre-tax profits more than doubling from £270,000 to £584,000 last year.
