Ashleigh Lezard

British company Dyson is moving its vacuum cleaner production to the Far East, causing job losses in the UK.

Although the company would not confirm it, the likely location is Malaysia, where the company already produces its cylinder models and has other parts of its supply chain. Founder and chairman James Dyson said in a statement to the press: “We import a lot of components from the Far East, so it makes sense to manufacture out there.”

A company spokesman said that when Dyson chose to invest in Malaysia it was attracted by the quality of the facilities and workers there. He added that many other big multinationals, such as Sony, have parts of their supply chains there. Mr Dyson also indicated that he was sizing up the market in China. “All my competitors have operations in China, it is about the cheapest place on earth for manufacturing.” It would also put him in a good position for markets in east Asia, Australia and New Zealand.

Research and development functions will remain in the UK town of Malmesbury, which has received Ł32m of investment from Dyson in the past two years. Washing machine production will also stay there.

Bristol-based Dinkie Heel, a manufacturer of steel toe caps for safety footwear for farmers and builders, is to relocate its production to Botswana. It blamed high costs and the strength of the pound. “We are moving to reduce production costs and improve the company’s competitiveness in world markets,” the management said in a statement. “Because of the low skill base required for this type of manufacturing, it is not viable to remain in this country. Like Dyson we are concentrating on keeping value-added services such as research and development in the UK.”