Xaar is reorganising its manufacturing and research and development facilities following problems with the XaarJet 500 print head that have led to lower-than-expected revenues and margins.
Production of all print heads, including the 500 which is currently carried out in Cambridge will be done at the firms Swedish factory. The move will mean the loss of 45 jobs in the UK, 17 of which are short-term contracts.
"From a management point of view the strength of the company is in manufacturing in Sweden and R&D in Cambridge," said chief executive Jan Fineman. "With R&D and manufacturing on the same site it is difficult to keep focused.
"This will allow the UK to do more long-term R&D into new technologies and product development."
The move will create 20 new jobs in Sweden. The process will begin in the new year and is expected to be completed by April. To cover the move the firm will take an exceptional charge of 1m this year.
Story by Barney Cox
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"Well done all involved... great to see the investment to increase the productivity in the same footprint- much more sustainable than popping another one up."
"From 1949 until the late 2000s Remploy had a network of government-subsidised factories that offered employment specifically to disabled people, originally often war veterans or victims of industrial..."
"Does appear an odd decision as with that level of shareholder funds they would be liable for the staff redundancy and cover the insolvency costs. It’s not like they could take the money and dodge..."
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