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10 January 2019, 08:41 | Updated: 10 January 2019, 08:45
204 jobs are at risk after Baxi Heating UK announced plans to close down its site in Norwich.
The company is closing one of its metals factories in Preston this year, and says that's freed up space to move more production there and away from Norfolk.
In a statement released last night, the business said:
"Baxi Heating UK has today (Wednesday 9th January 2019) announced proposals for a reorganisation of its UK business.
"Our intention is to grow our market positions across all brands and it is therefore important that the business prepares for the many challenges and opportunities that are presented by the UK’s heating market.
"We have now successfully launched a new generation of compact boilers that use stainless steel heat exchangers. This, and the strategic decision to outsource aluminium heat exchangers used in some older boiler types, has led us to take the decision to close the Preston foundry in 2019.
"The closure of the foundry will create additional space at the Preston site, and we are therefore proposing to transfer the production of water cylinders and electric water heaters for our Heatrae Sadia and Megaflo brands, from our smaller Norwich site, to Preston.
"These proposals, if implemented following consultation, will, regrettably, result in significant job losses and the closure of the Norwich site.
"The proposed closure of the Norwich site would also result in the consolidation of R&D activity at Preston and the transfer of other support activities to other Baxi Heating UK locations.
"This proposal would require significant investment in the Preston site and is supported by our parent company, BDR Thermea Group. It would result in an overall increase in employment on site.
"We recognise that these actions will have significant implications for our colleagues in Norwich and Preston. However, we firmly believe that they are necessary to make the company stronger and to place it in the best position to face the future challenges and opportunities in the UK’s heating industry."