Chesterfield company's future in doubt after Brexit vote

A Chesterfield-based company has said its future is in doubt after Britain voted to leave the EU.

Friday, 24th June 2016, 4:39 pm
Updated Thursday, 25th August 2016, 7:07 pm
Penny Hydraulics' new £1.5M site development.
Penny Hydraulics' new £1.5M site development.

The news has come at a particularly difficult time for lifting equipment manufacturer Penny Hydraulics, which has just started work on a £1.5 million site development, which is set to create ten new jobs and has been funded in part by an EU grant.

But the firm, which was founded in 1978 and employs 83 people, now says it is projecting a 15 per cent loss in turnover and will almost certainly be looking at job losses.

General manager and third generation family member Jess Penny said: “There is no doubt that the single market has fuelled Penny Hydraulics’ growth.

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“The stability, support and opportunities that the EU has brought over the years has enabled our company to grow and become the profitable organisation we have today.

“We have been able to provide jobs and opportunities for people that have been in short supply since the decline of traditional industries within our region. Due to this sad news today, we will now almost certainly be looking at job losses. We are going to see a gradual decline in pay, pensions, services and living standards as our economy begins to shrink and no-one knows how long this could last.”

The cost of buying and importing goods has also increased because of the decision. “We have seen a 13 per cent increase in the cost price of our new crane range overnight due to the exchange rate of the Euro,” Jess added.

“We have purchased a batch of winches today, they will be £8,585 more expensive than they were yesterday due to this decision.”