Archive Article: 2002/06/28
Strong £ sees off AGCOtackle plant
After nearly 60 years of tractor production at Banner Lane, Coventry, US machinery giant, AGCO is to close the plant by next June. Blame lies with that killing combination of the strong £ and weak k.
About 85% of the plants output is exported, making sales vulnerable to sterlings strength. 1000 jobs will be lost. There can be no better, or rather worse, testimony of how the strong £ is crippling Britains manufacturing industry, not least the farming industry. Despite a recent fall in value, sterlings strength continues to blight export opportunities as well as cutting UK farm support payments.
Perhaps its time to think again about how adopting the k on this side of the Channel might introduce currency stability.