Bosch pulls out of city development (From Evesham Journal)
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Worcester Bosch have announced they are pulling out of the city's Technology Park project.
10:23am Monday 10th September 2012 in News
By Richard Vernalls, @rvernallsWN #worcsnews
HEATING giant Bosch is pulling out of a flagship development on the outskirts of Worcester citing concerns over future growth in the energy market.
It is one of the city's largest employers.
Bosch, currently based at the works in Cotswold Way, were proposed to be the anchor tenant on the Worcester Technology Park, which is a Worcestershire County Council project.
However, in a carefully coordinated public announcement by both the county council and Bosch earlier this morning, Bosch revealed a change of heart.
Carl Arntzen, Bosch Thermotechnology Ltd's managing director, said: “While Bosch is performing with resilience, the overall market for heating and hot water products has declined as a result of current economic conditions.
"In addition, the projected growth and support in the UK market for renewable energy products has not materialised.
"In these circumstances it is necessary to take a very prudent and cautious approach and so the significant investment required to relocate to the new Technology Park cannot be justified on commercial grounds.”
He added Bosch was committed to a future at its current city site.
Councillor Simon Geraghty, the council's economic development chief, said they recognised Bosch had had to make "an extremely difficult commercial decision", adding the council remained committed to the tech park project.
"We will be working closely with partners over the next few months to ensure this project can continue to move ahead with [other] businesses benefiting from the ideally situated location."
Comments(18)
cbeardwood
says...
11:38am Mon 10 Sep 12
We are hearing numerous announcements of new shelf stacking jobs and growth in fast food chains but this low paid unskilled work whilst keeping unemployment figures down, does not provide disposable income necessary to keep the County thriving.
The County Local Employment Partnership together with the Counties M.P.'s must do more to raise the profile and predicament of the County economy
More Tea Vicar
says...
12:07pm Mon 10 Sep 12
Maggie Would wrote:Nimby?
That'll please the nimbys.
You mean those with the brains to spot a white elephant when they see one!
I always knew this scheme would end in disaster, but I thought it would get built, opened, close down once Bosch had pocketed the subsidies, and end up as housing.
The idea that it would create jobs for locals was always, to put it kindly, fanciful.
Bushi
says...
3:54pm Mon 10 Sep 12
More Tea Vicar wrote:What a load of Tosh! Bosch have poured Millions of pounds into developing there existing site. They have generated employment for over 1000 people locally. Why would they then spend in excess of £70 million only to sell it for building. Do the maths. They wouldn't have made mush money from the deal!
Maggie Would wrote:Nimby?
That'll please the nimbys.
You mean those with the brains to spot a white elephant when they see one!
I always knew this scheme would end in disaster, but I thought it would get built, opened, close down once Bosch had pocketed the subsidies, and end up as housing.
The idea that it would create jobs for locals was always, to put it kindly, fanciful.
Thanks goodness we still have companies like Bosch investing in our local economy.
More Tea Vicar
says...
4:29pm Mon 10 Sep 12
Investment is fine - urban sprawl isn't.
BTW - Bosch have a habit of absorbing subsidies and closing plants.
They were bound to be looking for subsidies to open in Worcester.
Doogie 46
says...
4:36pm Mon 10 Sep 12
I`m a great supporter of the Nimby (unless they get in my way of course)
Bushi
says...
5:11pm Mon 10 Sep 12
More Tea Vicar wrote:When Bosch bought the company the employed 700 nationwide, the now employ nearly 2000 people nationwide! I would say that they have generated employment!
There was never any need for the new site. They haven't 'generated' employment - the company already existed.
Investment is fine - urban sprawl isn't.
BTW - Bosch have a habit of absorbing subsidies and closing plants.
They were bound to be looking for subsidies to open in Worcester.
Take a look at companies house. I did, until the last few years they have grown there business year on year for as long as I can see. If you keep growing your business you need to expand.
What is it you want to see the company close it's operation in Worcester and everyone lose there jobs?
Lizzy drippy
says...
5:58pm Mon 10 Sep 12
Ctrl Alt Del
says...
8:56pm Mon 10 Sep 12
Illogik
says...
4:44am Tue 11 Sep 12
Bushi
says...
8:39am Tue 11 Sep 12
Illogik wrote:Great addition to the post, thanks
Their not there, sorry but it was irritating me.
More Tea Vicar
says...
10:57am Tue 11 Sep 12
Bushi wrote:You're assuming that all that growth was due to the Bosch takeover. The company had grown considerably beforehand.
More Tea Vicar wrote: There was never any need for the new site. They haven't 'generated' employment - the company already existed. Investment is fine - urban sprawl isn't. BTW - Bosch have a habit of absorbing subsidies and closing plants. They were bound to be looking for subsidies to open in Worcester.When Bosch bought the company the employed 700 nationwide, the now employ nearly 2000 people nationwide! I would say that they have generated employment! Take a look at companies house. I did, until the last few years they have grown there business year on year for as long as I can see. If you keep growing your business you need to expand. What is it you want to see the company close it's operation in Worcester and everyone lose there jobs?
And you're assuming that Bosch wouldn't do what they've done elsewhere. Take the subs, then bugger off, leaving the local economy high and dry.
This project was always a white elephant. The figures for the new jobs seemed to vary widely - mainly because they were made up, I suspect.
There are empty plots on the existing Warndon industrial estate, and land currently earmarked for housing should be used for industry, if lack of space is the problem.
But there are other issues affecting Worcester's economy, which are nothing to do with space.
Just building factories won't necessarily bring jobs, or guarantee that the jobs aren't taken by incomers, and maybe even immigrants.
And building one huge zone, so huge by comparison to the overall economy, is more likely to unbalance than stabilise the local economy.
Bushi
says...
12:29pm Wed 12 Sep 12
More Tea Vicar wrote:More Tea Vicar. Sorry! You have no idea what you're talking about!
Bushi wrote:You're assuming that all that growth was due to the Bosch takeover. The company had grown considerably beforehand.
More Tea Vicar wrote: There was never any need for the new site. They haven't 'generated' employment - the company already existed. Investment is fine - urban sprawl isn't. BTW - Bosch have a habit of absorbing subsidies and closing plants. They were bound to be looking for subsidies to open in Worcester.When Bosch bought the company the employed 700 nationwide, the now employ nearly 2000 people nationwide! I would say that they have generated employment! Take a look at companies house. I did, until the last few years they have grown there business year on year for as long as I can see. If you keep growing your business you need to expand. What is it you want to see the company close it's operation in Worcester and everyone lose there jobs?
And you're assuming that Bosch wouldn't do what they've done elsewhere. Take the subs, then bugger off, leaving the local economy high and dry.
This project was always a white elephant. The figures for the new jobs seemed to vary widely - mainly because they were made up, I suspect.
There are empty plots on the existing Warndon industrial estate, and land currently earmarked for housing should be used for industry, if lack of space is the problem.
But there are other issues affecting Worcester's economy, which are nothing to do with space.
Just building factories won't necessarily bring jobs, or guarantee that the jobs aren't taken by incomers, and maybe even immigrants.
And building one huge zone, so huge by comparison to the overall economy, is more likely to unbalance than stabilise the local economy.
The company wouldn't have grown as big, because to make the step from a small company to market leader needed an phenomenal amount of investment. Cecil Duckworth was and is a great man, but he didn't have that sort of money. It also needs to have latest equipment and technologies, technologies that Bosch did and do have. Bosch have been in the UK for over 100 years and in that time the only plant that was closed that took subsidies was the Alternator plant in Cardiff. That was closed because the Automotive industry is very competitive and Cardiff was to expensive and could not compete with Eastern Europe. If this is what you were referring bear in mind that they were in Cardiff over 30 years! Hardly take the subsidy and run.
As for alternative brown field sites, please tell me where would you locate a factory which was 5 times the size of their existing site? It would have to be half the whole industrial estate!
The project was not a White Elephant, Bosch have invested a lot of money in the potential site move and they'll get no return. Why would someone invest many £100,000's for nothing? The largest economic downturn for 80 years is why it didn't happen. If you're that good, back in 2003 did you know this downturn is coming?
New jobs might be taken by new people coming into the area, but don't forget that when jobs are created the people who fill them will then spend a proportion of the money they earn in the local community, at pubs, shops, restaurants, pays local taxes, etc. That goes back into the local community.
I welcome people from other countries if they are prepared to work and pay their taxes, they add to our country. We live in Europe people move around these days, a lot of Brit's work abroad. That is how things are in the 21st century.
Bosch are a privately owned companies with strong moral standards. They do not hire and fire
Rant over!
Vox populi
says...
12:46pm Wed 12 Sep 12
It’s a little bit wider than the factory I am afraid. Even those "incomers" or immigrants you refer to contribute towards the local economy by living and going about their daily business. Everything from council tax to buying a loaf of bread.
I for one think this is a great loss to Worcester whose underpinning large employers are slowly decaying to nothing. RIP Kays, Worcester porcelain/spode, Worcester sauce etc.
Still your view of the Cathedral will be clear as nobody will be living here. Afterall it is probably one of the few buildings in Worcester that doesn't require visitors with cash to spend to keep it open. If you are very lucky the retirement population with state pensions may keep the town going for a while but without employers it isn't attractive to anyone under 65. Don't say people can commute either, with rubbish rail links and fuel prices it is no longer a financially viable option for many.
Still theres always the student population to fall back on I suppose. Can't wait for the future high street: Age Concern shops with Whetherspoons in between them…
dulon
says...
2:53pm Wed 12 Sep 12
Matthew Jenkins
says...
3:04pm Wed 12 Sep 12
dulon
says...
4:52pm Wed 12 Sep 12
operators . The government in the early part of the century rode a bubble that was unsustainable . 105% mortgages etc and now we have to pay
ideas4all
says...
8:22pm Wed 12 Sep 12
Maggie Would says...
11:04am Mon 10 Sep 12