A Welshpool based company has said it will be cutting 15 jobs in an effort to “adapt to current market conditions”.

Invertek Drives, a manufacturer of Variable Frequency Drives (VFDs) which has its head office in Offa's Dyke Business Park at Buttington, near Welshpool, has confirmed it will be making 15 redundancies.

The business currently employs around 400 people, but has introduced changes to its production operations that include a move to a two-shift, five-day system as well as a reduction in its workforce of 15 employees.

The business added that the “difficult decision” was driven by several factors, including an increase in National Insurance contributions and an increase in the minimum wage, as well as an “industry wide slowdown” in Europe.

A spokesperson for Invertek Drives, said: “Invertek Drives has made changes to its production operations to adapt to current market conditions. This includes a move to a two-shift, five day system with a reduction of 15 employees.

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“This difficult decision was driven by a £600,000 increase in annual National Insurance contributions following the UK Autumn Budget, a 6.7 per cent increase in the minimum wage, coupled with an industry-wide slowdown throughout Europe.

 “It positions us for an expected upturn in industry-wide production and sales in early 2025.”

The company, founded in Welshpool 26 years ago, manufactures VFDs that are used globally to accurately control electric motors in applications ranging from material handling, pumping, ventilation, refrigeration, and HVAC systems.

The VFDs ensure accurate speed control resulting in improved processes, reduced energy consumption, and a reduction in associated emissions as a result.

In 2023 the company announced that it was planning to expand its Welshpool headquarters, building a 2,750 sq metre extension to the existing facility, which the company said would allow it to increase production capacity to more than 1.2 million units annually.

In confirming the business’ change in production operations, Invertek Drives added that it “remains committed” to the proposed expansion.

A spokesperson for the company added: “Invertek Drives remains committed to delivering high-quality drive solutions to its global customers as we continue to invest in our future at our headquarters in Welshpool, Powys.

“That investment continues with a new and expanded production facility and plans for a new Innovation Centre.”