Following a 90-day consultation, the white-goods company has announced it will end production at the factory, in Woodston, on November 28, with the loss of 423 jobs. Bosses have blamed a downturn in the market for free-standing fridges for the decision, saying the plant had become unsustainable.

Indesit manufacturing director Carlos Ramos said: "Despite £8 million of investment in the Peterborough factory over the last three years, as well as extensive discussions with trade unions over the past few months, it has been jointly agreed that none of the scenarios explored for Peterborough are sustainable.

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"The ongoing decline in demand from the UK for free-standing cooling products manufactured at the site, combined with increasing manufacturing costs, means we have no other option but to close the factory by the end of November."

The company says it is working with affected employees to help them retrain, and has made 70 positions available elsewhere in the business to soften the blow of the job losses.

Major firms in the area including Perkins and McCain are visiting the factory before its closure to recruit some of the workers facing redundancy.

Indesit says 1,000 people will continue to be employed at its head office, call centre, service and logistics operations at the Woodston site.

Shailesh Vara, the MP for Northwest Cambridgeshire, said: "This is very bad news and my thoughts are with the affected workers and their families. Unfortunately this decision reflects the current economic climate."

Related:
Business - Peterborough firm is over the Moon at awards, 18 August 2008.

Logistics team at Indesit in Peterborough scoop two national awards, 21 July 2008.

External link:
Indesit Company UK - www.gda.uk.com.