ONE of Journal-land's major companies is closing with the loss of 180 jobs.

Townsend Cycles is making 180 redundant at its Leigh factory because of the strength of the pound.

The move to shut the plant comes just months after staff were put on a three day week.

The company, which makes a range of mountain bikes, was Britain's second largest bicycle manufacturer.

It built its business by specialising in low budget machines as the mountain bike boom took off.

But the strength of sterling means that bikes can be imported more cheaply than its costs to assemble them here.

The firm started life in Bolton and opened its £6 million plant in Horizon Park, Leigh just over three years ago.

Parent company, Tandem, intends to now concentrate production at its Falcon Cycles factory in Brigg, North Lincolnshire, where a further 180 people work.

Tandem expects to raise more than £10 million selling off the Leigh factory and warehouse.

Group Chief Executive, Robin Bromley-Martin, said: "We do not like having to make people redundant at any time, but we have been forced into that situation largely by the strength of the pound.

"Unfortunately, this building is far too large for us, even if we were to move production from our North Lincolnshire factory.

"Until four years ago, before the previous owners built the factory, Townsend imported all its bicycles.

"We are effectively putting the clock back to the time when sterling was not so strong. We are not closing the business. All we are doing is sourcing our products from a mixture of our other factory in Brigg, Lincolnshire and abroad."

And he added: "Should sterling fall appreciably against the dollar and/or the Far East currencies we have the option of repatriating assembly of our bikes in the UK."

The Townsend company first started manufacturing bikes in the area in 1983, in a small premises on Shiffnall Mill, Bolton. It developed rapidly and was taken over twice by bigger companies, to the point that it developed from a £15,000 outfit to a £50 million-a-year company, second only to Raleigh in Britain.

Hope Carr Cllr Brian Jarvis described the closure as "a body blow" to the area.

He said:"I'm very disappointed the way things have turned out. I attended the opening of Townsend's new factory, when the expectations were high and the future looked bright. It is very sad."

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