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Rakon Lincoln closure plans for operations to move abroad

Manufacturing company Rakon is considering ceasing its operations in Lincoln, putting 88 jobs at risk.

The electronic component manufacturer on Sadler Road will close in order to move its UK manufacturing operations to New Zealand.

The announcement comes after a review by the board, as there are duplicate overhead structures and manufacturing capabilities between the Lincoln and New Zealand operations.

Additionally, the company stated the possible closure is due to finances being “not where we want them to be.”

A consultation will now take place to determine if the closure of the Lincoln operations will definitely go ahead.

A research and development centre in Harlow, which employs 22 people, would still remain if proposals go forward.

Rakon is expecting a loss of $54 million in its 2014 financial year, ending on March 31.

However, the restructure could mean a much higher loss if it happens in this financial year.