Ceramics group Beauford has provided fresh evidence of the impact the economic crisis in the Far East is having on local industry.

Last week, it warned its order book has been hit by problems here and the strength of the pound.
Beauford is planning to carry out ‘‘rationalisation programmes’’ at Wade Ceramics in Burslem and Milton-based Allied Insultators.

The company has confirmed this could mean job losses - but adds no decisions have been made.

Beauford told investors: ‘‘The ongoing Asian economic problems combined with the effects of the pound remaining strong continue to affect us as we move into 1998. Therefore, we have taken action to mitigate some of their effects.’’

Beauford is not the first company to make such a warning. In December, the Flare Group made 30 workers redundant at two Chesterton subsidiaries, kiln maker Bricesco and drying specialist Thermic Designs.

It came after customers in South East Asia were unable to get credit for orders worth £7 million.
Geoffrey Snow, a partner at Hanley stockbrokers P H Pope & Son, said Beauford chief executive Edward Duke has made some alarming comments.

Mr Duke is quoted elsewhere as saying: ‘‘I would liken the situation to blind panic. I am absolutely convinced we are in a manufacturing recession.’’

Mr Snow said: ‘‘If that is the case, then there are repercussions for other companies. It is a worrying statement.’’

Business Week was unable to contact Mr Duke.

Tim Hiscock, international trade director at North Staffs Chamber of Commerce, said he is hopeful the Far East downturn will prove short lived.

Mr Hiscock said: ‘‘Economic growth over there has been unsustainable. I think it is still adjusting itself and will adapt to something more realistic.

‘‘My view is that the medium term is going to be better.’’

Mr Hiscock said 11 firms from the ceramic machinery and materials industries will be going on a trade mission to Malaysia shortly.

‘‘It will probably be a pretty disappointing show but they are sticking with it because this market is important and in the longer term will come good.’’