Magnadata has confirmed up to 63 people could face redundancy as part of consultation it has entered into.
General Manager of BemroseBooth Paragon, Rob Burgin comments: “Subject to consultation with the union and based on proposals made by the business there will be up to of 63 people who may be put at risk of redundancy.
“It is hoped that as a result of our proposal, and by working closely with our employees and their trade union, we are able to minimise the impact on our employee numbers in Boston.
“Further comments cannot be made regarding the detail of the proposals but updates will be given as and when it is appropriate to do so.”
Friday, 12.47pm - The company currently overseeing the running of Magnadata has confirmed it is in a ‘period of collective consultation’ with the workforce after ‘change became unavoidable’.
In a statement to The Standard, the general manager of BemroseBooth Paragon which bought Magnadata in August, 2015, Rob Burgin said: “It is with regret that I confirm that we have entered into a period of collective consultation with the workforce at Magnadata, a trading division of BemroseBooth Paragon, in Boston.
“Thorough analysis of the current business model, and recent announcements regarding the application for residential planning permission on the existing site, has meant that the decision to implement change has become unavoidable.
“We are working on a proposal that will support the future sustainability of the business in Boston, aligning it with the strategy of the wider organisation. Further details will be shared once plans are finalised and agreed.”
In August it was announced that Paragon Group, a leading provider of technology-driven business solutions across Europe and globally, had acquired, for an undisclosed sum, the trade and assets of Magnadata International Ltd (Magnadata), which was placed into administration on Thursday, July 30.
The Boston firm specialises in the development and manufacture of security and access control media including magnetic, smart tickets and tags.
Following the acquisition, which was managed by the appointed administrators at international accountancy firm Mazars, Magnadata was set to form part of BemroseBooth Paragon subsidiary.
Magnadata has been in operation since the 1980s, having won the Queen’s Award for Technology in 1989 for its initial product development.
The Norprint arm of the business was closed during following its placement into administration.
Earlier this month, The Standard reported that the site of Magnadata International could be set to be transformed with up to 173 new houses.
A planning application has been submitted to Boston Borough Council for the site which is accessed from Horncastle Road and Norfolk Road.
In the design and access statement submitted to the council by Cartwight and Gross, on behalf of Cloews Developments (North West) Ltd, it is proposed to redevelop the site.
The plans are set to include 12 one-bedroom apartments and 35 two-bed, 59 three-bed and 67 four-bed homes.
Although The Standard has recieved reports of the numbers due to be affected, Magnadata is yet to officially confirm them.