BOC to cut 1,500 jobs worldwide

BOC is cutting about 1,500 jobs worldwide in a bid to fuel higher growth across the business.

BOC is cutting about 1,500 jobs worldwide in a bid to fuel higher growth across the business.

The industrial gases group hopes to save as much as £55 million sterling a year through the restructuring plan, which is the result of a six-month review.

The Surrey-based firm says further "operational efficiencies" in Britian, Asia and the US will result in an extra £50 million of annual savings.

BOC has been hit by a marked downturn in demand for gases and vacuums from the high-tech semiconductor industry.

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In the third quarter of the year, operating profits at its BOC Edwards arm fell by 25 per cent as orders from semiconductor manufacturers dried up.

Today, BOC says the division may not see a pick-up in demand until the middle of next year, given the current economic gloom.

The job cuts will be spread across BOC Edwards, as well as through the group's Industrial and Special Products and Process Gas Solutions businesses.

Despite the slowdown at BOC Edwards, the group says it managed to increase pre-tax profits before one-off costs by 3 per cent in the third quarter to June 30th to £118.9 million. They were achieved on turnover of £1 billion - also up 3 per cent.

PA