L&G to cease new modular production at ‘unviable’ Selby factory

Legal & General is proposing to reduce business activity and cease new modular production at its factory in Selby, North Yorkshire, while reviewing strategic options for the business. It said a number of factors, including long planning delays and the impact of recent events such as Covid-19, meant the business had not been able to secure the necessary scale of pipeline to make its current model work. It will begin a consultation period with all employees around the proposal to make the majority of modular homes roles redundant. The 550,000 sq ft factory was unveiled in 2017, with the capacity to produce thousands of homes per year across eight production lines and employs several hundred local people. The factory closes as L&G’s chief executive Sir Nigel Wilson announced plans to retire. Wilson has long been an advocate for modular housing. He told EG in an interview last year that innovations such as modular construction could be part of the wider solution to the housing crisis. He had said at the time that it would take years for L&G business to make the mark he believed it would ultimately be capable of. L&G Modular Homes chair Bill Hughes said: “Legal & General is proud of what we have achieved in bringing forward a new approach to construction through our factory. However, without the necessary scale of pipeline it is not sustainable to continue producing more modules. “We are therefore reluctantly proposing to reduce business activity and cease production of new modules at the factory. “Regrettably, this includes commencing consultation with all employees around the proposal to make the majority of modular homes roles redundant. We recognise this will be a challenging and uncertain period for our staff and we will be actively exploring redeployment opportunities and supporting them during this difficult time. “Legal & General remains deeply committed to the UK housing sector, where we have delivered 15,000 homes over the past three years, and to our valued industry partners and customers. “As such, we are continuing to actively explore all options available to us and will retain a select workforce to ensure high-quality delivery and aftercare services for our existing customers, while engaging with each of our partners regarding ongoing modular projects.” To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @AkankshaEG or @EGPropertyNews