Building materials firm Tarmac, which has been a feature of the Wolverhampton business scene for more than a century, is moving its headquarters to Solihull – leaving 500 workers fearing for their jobs.
The company is consulting with employees over plans to wind down its base in Wolverhampton over the next 12 to 18 months as part of a joint venture agreement with concrete company Lafarge.
The new headquarters for the partnership would be at Lafarge’s site in Solihull – meaning Tarmac, which has been part of Wolverhampton since Victorian times, will no longer call the city its home.
Pat McFadden, MP for Wolverhampton South East, said it was “a bitter blow” for the city and its economy.
He said: “Tarmac has a very long history in Wolverhampton and we are losing not only much needed jobs but a company with iconic significance for the city.
“I have spoken to the chief executive and expressed my disappointment with the decision.
“What we need desperately in Wolverhampton is more jobs and more businesses coming here, not companies like Tarmac leaving the area.”
Tarmac has been part of Wolverhampton since the early 1900s when it was formed as the Tarmacadam Syndicate.
Mining group Anglo-American bought Tarmac after it split from its construction arm Carillion in 1999.
French firm Lafarge has an aggregates base on Coventry Road in Solihull and it completed a deal worth more than £2 billion with Anglo American earlier this year.
The two companies have struggled in recent years against a global fall in construction activity against a backdrop of economic gloom.
In the summer, after the deal was announced, the Competition Commission ruled that the companies had to sell “an extensive package of operations” including one of the UK’s largest cement plants, for the planned joint venture to win approval.
Lafarge has previously outlined a plan to cut costs by more than £1 billion to boost profits over the next four years.
Tarmac chief executive Terry Last said: “We are currently consulting with employees on how the Tarmac/Lafarge joint venture will be structured once the regulatory process is complete.
“It would be inappropriate to comment publicly while these conversations with employees are still ongoing.”
Solihull MP Lorely Burt told the Post she planned to seek a meeting with the management team to ascertain employment plans.
She said: “Obviously we are pleased to hear of a new joint venture in Solihull, however, I will be asking to meet with the management team to understand how this will affect the economic prospects of the new company.
“I am keen to find out about the effect on jobs both in the Black Country and also for Solihull.”
