Bus maker: we're committed to Blackburn (From Lancashire Telegraph)

Bus maker: we're committed to Blackburn

3:00pm Tuesday 31st August 2010 in

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THE boss of bus maker Optare said the firm was committed to East Lancashire — and revealed it is hunting for new premises.

Chief executive Jim Sumner’s comments come after the company switched 50 jobs from Blackburn to its Leeds site, prompting fears the business could quit Lancashire.

But Mr Sumner said Optare was in a position of strength following a tie-up with Indian manufacturer Ashok Leyland and an overhaul of the business.

Optare’s base in Lower Philips Road, Whitebirk, will instead become a hub of research and development and low-carbon technology excellence, securing its future, bosses said.

Mr Sumner said: “It makes more sense to do production in Leeds and send specialist work to Blackburn.

“The intention is to grow Blackburn and bring more high-quality jobs there.

“That is a long-term commitment to the area.”

Former Leyland Trucks chief Mr Sumner arrived at Optare in June 2009, months after a planned relocation to Walker Park, near junction five of the M65, was shelved.

Mr Sumner said that given the economic and industry climate, it was the ‘right move’ but revealed that the firm was now hunting for a new, more modern site.

He said he hoped to relocate Optare in the next 12 to 18 months and its new home would ‘absolutely’ be in Blackburn.

Optare - which was formed in 2008 out of a merger of Darwen Group, Optare and East Lancashire Coachbuilders - has implemented painful measures to survive the downturn, including slashing its Blackburn workforce from 320 to 210.

However, Mr Sumner said the agreement with Ashok Leyland, which saw the London-listed but Indian-controlled firm buy 26 per cent of Optare’s shares, would ensure a bright future.

He said: “This is a game-changer. It gives us opportunities that we could not even have dreamed about before.

“It gives us access to markets that Ashok has footholds in and to their expertise.

“My view is that this will grow the business long-term.”

Part of the £5million cash injection from Ashok will be used to pay down some of Optare’s debt, added Mr Sumner.