- French owner of historic business to cut half staff
- Cost of power blamed as production shifts to Brazil

One of Britain's most fragile regional economies was dealt a hammer blow yesterday when the main operator of the historic china clay industry in the West Country said it would axe 800 jobs, almost half its staff.

Imerys, which bought the English China Clays business in 1999, blamed soaring energy costs for its decision to end activities in Devon and slash staffing across Cornwall, where it is the biggest private sector employer. The French company promised to invest £25m in Cornwall over the next two years to bolster the future of the 270-year-old industry but it accepted the cuts would damage the struggling local economy.


Christophe Daulmerie, UK director at Imerys, said he was doubly mindful that French employers were also under attack after PSA Peugeot Citroën's decision to close down its car factory at Ryton, near Coventry. "We understand that [people will make that] connection but we cannot change what Peugeot is doing. We regret having to make our job losses but to do nothing would put the whole business at risk," he said.

The central problem for Imerys is the energy-intensive nature of its key "coating" work, where clay is mined, refined and dried for use as white pigment in high-qua