Sony announcement

I am sure that all Members, as I am, will be extremely disappointed to hear the announcement that Sony is to cease produce cathode-ray-tube-based televisions at its sites at Bridgend and Pencoed. Our thoughts are with those affected by this announcement. With our Team Wales partners, we are leading a rapid-response team to provide support for those affected by today’s announcement, which is the result of a rapid and irreversable decline in European demand for CRT-based technologies. These jobs will not be relocated anywhere else; it is purely a matter of this product ceasing production.

The closure of the Bridgend facility will mean the loss of 400 jobs, and of 250 related jobs at the Pencoed plant. Three hundred employees will be retained at the Pencoed site, which will focus largely on the production of high-technology camera systems.

In addition, we will work closely with the company at the highest levels to identify and develop further opportunities for the Pencoed site. These could include extra work within the areas of service, logistics and customer-support facilities. However, we will also be working with top management to explore opportunities for high-end work, which will build on Pencoed’s excellent reputation within the Sony group. We will also redouble our efforts to identify commercial opportunities arising from the company’s link with the digital technium at the University of Wales Swansea.

We are also looking at any impact on the Sony supply chain, and, where appropriate, will offer support for diversification to companies affected by today’s announcement. The company has publicly praised the excellent performance of the manufacturing facility at Bridgend, and has stressed that this very difficult decision in no way reflects upon the performance of the employees at the plants in south Wales. I echo those sentiments, and pay tribute to the quality of the Sony workforce.

I am also conscious that the job reductions will have an impact on the local economy. We will, again with our Team Wales partners, consider what might be done to reduce this impact. I can confirm today that the Welsh European Funding Office will bring forward for immediate appraisal the proposed development of Bridgend town centre, which was originally submitted for Objective 1 funding. Bridgend was the next project on the reserve list for town centre redevelopment, and WEFO has confirmed that sufficient funds are now available to bring it forward.

In conclusion, our officials are already in discussion with the director for European operations at Sony, and I will be speaking to Sir Howard Stringer, the chief executive officer of Sony, to reinforce that we will do our utmost to build on the company’s development at Pencoed.