DCD Venco to close shop, leaving a dent in employment rate
After 43 years as part of the fabric of Newcastle, DCD Venco has confirmed it will be switching off its machinery and closing its doors.
Brutal economic conditions continue to chip away at local businesses.
After 43 years as part of the fabric of Newcastle, DCD Venco has confirmed it will be switching off its machinery and closing its doors.
The official date of closure is in June, and management said the decision to shut down was not an easy one.
“The closure had nothing to do with the performance of Newcastle DCD Venco, it was a business decision and a sign of the current economic situation,” said Newcastle
DCD Venco General Manager, Willem Marè.
After extensive investigation and research, closure was the only way forward.
“For some time now, we have been investigating the opportunity to consolidate our heavy and medium engineering businesses into a stronger, more resilient and efficient entity. A number of permutations have been looked at, particularly with regard to how we extract the most value from our Vanderbijlpark, Vereeniging and Newcastle facilities,” explained Digby Glover, CEO of the DCD Group, in a press statement.
He went on to say an analysis was conducted, which included market needs, the effect on various stakeholders, the current economic climate and outlook, as well as the contractual and commercial obligations, the business competitive position and future potential.
After serious consideration, Mr Glover said it was decided to incorporate Venco operations into the Vereeniging and Vanderbijlpark facilities.
“DCD has every intention of continuing with all products and services currently being offered from the existing facilities. It is intended this move ultimately enhances our ability to deliver the products and perform these services as effectively and efficiently as possible in the current and forecast market conditions,” Mr Glover concluded.
Established in Newcastle in 1973, DCD Venco employs an average of 208 employees, of which 17 per cent are contractors.
Sadly, the bulk of these employees will be retrenched, although they do have the option to apply at the Vereeniging facility.
In its years of operation, DCD Venco created employment for locals, sponsored disadvantaged schools, trained and developed apprentices, and was also a main component of the annual Cell C ‘Take A Girl To Work Day’, an initiative which saw female school pupils tour businesses, to encourage them to pursue trades as artisans.
Venco also won the best welder competition twice in succession.
“It is a sad day for us and the effect on Newcastle is going to be huge,” concluded Mr Marè.
