Peavey Electronics is to close its UK distribution facility in Corby. This follows an examination of the company's operating structure to compete with the lower cost structure of its competitors.
The Corby facility was originally set up as a manufacturing plant for large items to minimise international shipping costs – a function that the company says has not been required for some time with more advanced and lower-cost Chinese manufacturing.
A company statement said that changes will be made to improve the international supply chain and the sharing of global resources, bringing manufacturing and international customers closer together, and that a "reduction of complexity in operations" will take place over the coming months. The company says it is "confident that this approach will be a significant benefit to its dealers and customers".
It is understood that approximately 40 people currently work at the site. Peavey will be announcing more details of the restructure over the coming months – which will presumably include arrangements for ongoing product support.
“Europe is a key market for us,” commented Clive Roberts of Peavey Electronics Limited. “The company has been looking closely at the structure of its European operation and what the best fit will be for the business moving forward. Our organisation needs to become more efficient and improve the allocation of international resources, especially if we are to continue the mantra and market niche that [company founder] Hartley Peavey set in place; providing quality gear at a fair price.”
Peavey's product lines include MediaMatrix, Crest Audio amplifiers and Architectural Acoustics.