REHAU Ltd

Part of 4. Topical Questions – in the Senedd at 3:40 pm on 30 January 2019.

Alert me about debates like this

Photo of Ken Skates Ken Skates Labour 3:40, 30 January 2019

Can I thank Rhun ap Iorwerth for raising this important question for his constituents and perhaps, first of all, give some background to the decision that's been made by the company and then highlight some of the options that—collaboratively with the company and with the Anglesey council officials that the Member refers to—we are looking at taking forward, including the support that might be available for those options? And then, thirdly, if I could, Dirprwy Lywydd, I'd just like to touch upon the work that has taken place now within Welsh Government concerning both north-west Wales, in particular Anglesey, and also, given alarming news from Airbus and speculation over the future of the Broughton site over the long term, the support that we are looking at offering north-east Wales as well—in fact, the entire north Wales region.

First of all, in terms of the background, Rhun ap Iorwerth is absolutely right: the Amlwch site produces a particular type of PVC edge band for furniture products that has seen a sharp decline in recent years—a decline of something in the region of 75 per cent. Its sister site in Tortosa, Spain, has a number of advantages over the Amlwch site, including the fact that it has room to accommodate expansion, whereas the Amlwch site is limited. It has a more diverse product mix as well, and it has an established tooling capacity on site. Now, in terms of the options and the work that is now taking place and the potential support that we could offer the business, first of all, we're looking at the possibility of investing in the Amlwch site in order to create as level a playing field as possible with the Spanish sister site. Secondly, we are looking to assist the Amlwch site in diversifying the manufacturing base of the actual plant so that it can produce more than the specific edge band products that we've seen a sharp decline in over recent years. This, in turn, would allow a longer term strategy to be implemented that would see resilience built into the business. And then, thirdly, and I think very importantly, we and the company are exhausting all of our contacts, not just within Wales and the UK, but internationally, to look at whether there are third parties that could utilise the Amlwch site for manufacturing activity on a contract basis or, indeed, allow third-party manufacturers to utilise the existing facility. So, every option is being examined at the moment. 

A number of actions have arisen from the meeting that took place on Monday, including, of course, all of the support that could be offered by Welsh Government to workers if the site were to be closed after the consultation period. We'll be relaying all of the available support in the ReAct programme to the workforce. We're identifying those third parties that could come into the Amlwch site or use the Amlwch site to produce other products. And I'll also be communicating with the main board of the company. Of course, the company is based in Germany. Its administrative headquarters is based in Switzerland, and it's run by a Swiss family. I'll be seeking to establish lines of communication with the board in order to influence the company's decision over the next 90 days.

Looking more widely and broadly at Anglesey, north-west Wales and, indeed, the whole of north Wales, I have asked officials in my department to examine all opportunities for accelerating capital spending projects in north Wales, and in particular on Anglesey, given the decision relating to Wylfa Newydd. I think it's absolutely essential that we bring forward a pipeline wherever and whenever possible in the region, but particularly on Anglesey, which can replace the jobs that have been promised in the shorter term with the Wylfa Newydd project whilst a decision is made over whether to resume that particular programme of work.