Staff at an engineering company are facing an uncertain future after plans to close one of its manufacturing sites in Stamford were announced.
Cummins Generator Technologies plans to shut its facilities in Barnack Road but intends to create a technical centre of excellence at its site in Ryhall Road in the town.
Cummins currently employs 500 people in Stamford but says the new investment will safeguard the jobs of 150 people.
The company says it hopes to keep redundancies to a minimum and will look to find alternative positions for staff at its other sites across the UK, including Peterborough where it has offices in Lynch Wood.
An announcement released by the company states: “Despite investment and efforts to improve productivity, the Barnack Road facility in Stamford remains uncompetitive and the plan is to close the facility in the next 12 months.
“However, Cummins is committed to maintaining a presence in Stamford and to providing high quality employment in the town.
“As such, it plans to invest in a new technical centre of excellence at its Ryhall Road facility, which is expected to secure long term jobs for approximately 150 people.”
A spokesperson added: “This was a difficult decision for us to make.
“We recognise the impact that closing our Barnack Road facility will have, but despite extensive efforts we have sadly not be able to secure a sustainable future for the site.
“By undertaking this reorganisation we will be able to improve productivity, deliver greater value for our customers and ensure that our manufacturing operations remain sustainable.
“We remain committed to Stamford and believe our new centre of excellence will allow us to establish a deeper technical presence now, and for the long-term.
“We will be actively working to support our employees and the community during the transition.”
Cummins has had operations in the U.K. for over 50 years and currently has eight manufacturing facilities, employing 4,500 employees across 23 sites.