Weir Restructures Pump Operations and Cuts 490 Jobs

Within this restructuring programme the company will downsize activities and concentrate only on those sectors where they see continued growth. Weir intends to focus the efforts on fewer higher margin products and on markets.

The restructuring is likely to result in around 310 job losses at Weir Pumps' sites at Cathcart and Alloa in Scotland, Manchester and some regional sales offices. As part of the restructuring programme and after a period of consolidation Weir intends to relocate to a more appropriate sized facility within the greater Glasgow area.

At the time of the Company's trading statement in January 2005 Weir announced it was undertaking a strategic review of its Valves & Controls division. This review has now been completed and plans to outsource non-essential operations and relocate the division's UK based Valves business to a smaller modern facility are now being implemented. The plan is likely to result in around 180 job losses at the business' Huddersfield plant.

These restructuring programmes are currently expected to incur exceptional charges in the order of £31m in 2005, all of which will be cash costs. Both of these reorganisations are expected to return the respective businesses to profitability in the first full year, 2006, with full recoveries of cash outflows expected during the course of 2007.

Weir announced consultation with employees and trade union representatives as well as a comprehensive package of support including job search services for those employees affected by the restructurings.

"I realise that these proposals will have a significant impact on our employees. The actions we are taking will ensure that we have a sustainable future for Weir Pumps and our UK Valves businesses" commented Mark Selway, Chief Executive.