14 February 2002 | David Arminas
Vacuum cleaner maker Dyson is in talks with its UK suppliers this week after its announcement that manufacturing will move to Malaysia.
A spokesperson said some UK suppliers will be affected, although Dyson already has a plant in Malaysia.
"We will work closely with all suppliers," she said, "but the manufacture of the washing machine will remain in the UK."
The move is expected to cut production costs by about 30 per cent, helped by lower labour costs. Hourly wages in Malaysia are about £1.50, three times cheaper than in the UK.
James Dyson, engineer and inventor, set up the plant near the Wiltshire town of Malmesbury six years ago.
Up to 800 of the company's 1,800 workforce are expected to lose their jobs in the move. Research and development will stay in the UK.
Dyson had sales of more than £200 million in 2000.