"Choppy Waters" Ahead, But QinetiQ Set To Ride The Storm (West Worcestershire Liberal Democrats)

West Worcestershire Liberal Democrats <contact.us@westworcslibdems.org.uk>

"Choppy Waters" Ahead, But QinetiQ Set To Ride The Storm

March 29, 2010 7:34 AM

Richard Burt sought assurances about the long term future of QinetiQ's Malvern site in a top level meeting in Westminster yesterday.

Richard joined Liberal Democrat Shadow Defence Minister, Nick Harvey MP, Managing Director, Neville Salkeld and Director of Defence Markets, Ron Finlayson for talks about the company's future following two profits warnings given to the City during the past six months.

Richard was told that the future of the Malvern site was secure following privatisation, but Neville Salkeld said the company would need to weather "choppy waters" ahead and that recent and expected cuts in defence and research budgets would be increasingly difficult to manage.

"Malvern and Farnborough, the company's two main UK sites, are both running at around 50% capacity. However, I have been assured that there is no prospect of consolidating operations on either site, but investment in both sites will need to be tailored to difficult trading conditions in both the UK and US markets," said Richard.

"The company is currently undergoing a strategic review of its UK operations and will continue to work closely with trade unions and a newly established staff forum over future changes.

"Despite a 20% cut in UK defence research budgets over the past two years, the company is demonstrating a real determination to adapt and diversify which bodes well for Malvern's biggest employer at a time when cuts in public sector spending are inevitable."