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Raleigh Stops Production in England

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NOTTINGHAM, UK (18 March) – Raleigh will stop the production of bicycles in England altogether. This decision was taken last week at a meeting of the Executive of The Raleigh Cycle Group. Assembly of Raleigh bicycles in England will stop at the end of this year. The present site in Nottingham will have to be […]

NOTTINGHAM, UK (18 March) – Raleigh will stop the production of bicycles in England altogether. This decision was taken last week at a meeting of the Executive of The Raleigh Cycle Group. Assembly of Raleigh bicycles in England will stop at the end of this year. The present site in Nottingham will have to be vacated at the end of 2003, a decision taken by the previous owners, USA-based Derby Cycle Corporation who sold the site. The transaction included an option for a new location for assembly and distribution at Blenheim Industrial Estate at Bulwell, but Raleigh Cycle UK has informed the Nottingham city council that it does not intend to pursue the move.
A re-investment in a new assembly plant in the UK could not be justified now in view of the developments during the years since the sale of the premises was concluded. The competitiveness of imported bicycles and the price sensitivity of the British market. Furthermore, the present EU tariff protection does not extend beyond 2005, and it cannot be assumed to be sufficient in the medium term to ensure the financial viability of the investment in a UK assembly plant of Raleigh’s scale.
This decision will result in the loss of some 280 jobs. The Raleigh Cycle Group CEO, Alan Finden-Crofts, in expressing his own particular regret at the decision, and has emphasised that redundancy payments will be made in full in line with established practice in Raleigh.
“Raleigh quality” bicycles will continue to be distributed in the UK. They will be built by partner suppliers overseas. Raleigh Cycle UK are still seeking an appropriate location for its distribution centre and offices. Raleigh UK wishes to express its appreciation of the support which Nottingham City Council has given, and the efforts it has made to obtain a suitable site in Nottingham for its operations.(OB)

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