Parent company Music Group intends to make 70 employees redundant, and move loudspeaker production to a new facility in China...

In a week where we published a glowing five-star review of Tannoy's Eclipse 3 floorstanders, Music Group has announced its intention to make around 70 Tannoy employees redundant from its Coatbridge plant in Scotland. These redundancies will mean the closure of the plant, with the production of Tannoy speakers moved to Music’s new manufacturing facility in Zhongshan, China. R&D and marketing activities will be moved to Music’s Innovation Centre in Manchester, UK.

Music Group, based in the Philippines, but with offices around the world, acquired Tannoy, a name synonymous with loudspeakers and a company celebrating its 90th birthday this year, in April 2015 from its former owner TC Group. At the time, Music Group founder and chairman Uli Behringer said: "We will invest heavily in positioning TC Group's brands at the very pinnacle of the industry."

The announcement was made to employees today, 29th April. Peter Sommer, senior vice-president Lifestyle & Home, said: “Following an extensive evaluation of our operational and financial structure, we have taken the difficult decision to propose that the staff in our Tannoy manufacturing and office facility in Coatbridge are dismissed as redundant, which, if confirmed would see the facility closed.”

Tannoy sales, orders and deliveries remain, we are told, unaffected.

See all our Tannoy reviews


jrocker's picture

Tannoy factory

British speakers should be made in britain this is why products don`t last anymore,cheap layber poor quality.I`ve had a set of the first m1s m3s and centre speaker since they came out in the 90s and they still work perfectly . I`ll take the British bit back as they have been owned by a Danish company for about 6 years ,but i bet when they bought Tannoy they told them this would never happen.

deltadel's picture

Tannoy factory closure

Sad news to hear of another British HiFi company moving production abroad, but with so many other companies having done the same, I suppose it was only a matter of time.

This is happening across the board in British manfacturing.

We need to support the remaining British manufacturers as best as we can to stop more of them moving their production plants abroad also.

marcus_h's picture

Tannoy factory closure

On top of this, many British hi-fi firms (not to mention other industries) are being bought by Chinese companies - KEF, Wharfedale, Mission are a few examples. 

Jota180's picture

That's them off my shopping

That's them off my shopping list, for good.

Benny's picture

REALLY necessary Tannoy ?

Is this REALLY necessary Tannoy?
Love my Kensingtons and dreams about Westminster. But Westminsters made in China?

simstersears's picture

The usual corporate asset stripping

Music Group's decision was not difficult at all. Having had experience of moving factories from the UK to Eastern Europe and subsequently to China I know the "extensive evaluation of our operational and  financial structure" probably took no more than an afternoons work by their accountants. The gap between the purchase and moving production to China is so short it was always and can only have been their clear intention. After paying off the sacked, sorry redundant, staff  they will take out cost (apart from the Chinese wage bill being 1/10th of UK) i.e. reduce quality, optimise revenue, i.e, reduce the range and Music Group will get their money back within a few months.

sergio abelli's picture

Great speakers

I do not know what to say I'm passionate HI FI and if I want English electronic I want on the back of aparecchio say Made in england !!!

John Bryans's picture

The end of an era.

Disgusted and disappointed to say the least,,another great Brittish brand dead!

The tannoy brand wont be so appealing now that it's loudspeakers are going to be mass produced in China with cheap quality components and this will be the demise of the famous tannoy brand as it will now end up becoming an inferior product compared to what tannoy stood for.

I for sure will never buy tannoy loudspeakers that were manufactured in China,the brand is now dead to me.


Boris Chan's picture

The Death of Another Legendary Brand

The appeal of Tannoy as a British brand will be gone if they move the entire production line to China. Apparently they don't understand that Chinese and other Asians are willing to pay triple the price for a non made-in-China product. I guess the management team deserves to be made redundant more than the hardworking people at the production line. 



NSA_watch_my_toilet's picture

Death of Tannoy

Sorry to read that. But it's a blatant incompetent and unstrategic move. If something was prooven over and over again, it's that the perception of a brand by the public is coming from their story and location.

Look at Marzocchi. They produced top end forks and where the great thing with Rock Shox, but they delocalized and the quality dropped down. They are now only a fraction of what they where.

Look at Quad. A brillant english brand that you found nearly everywhere in the last century. Now, it's just a ghost of what it was.

Look at Ampeg. They had delocalized absolutely everything of their amp production. And then came the dark age of Ampeg, with reliability problems over and over again, and lots of unhappy customers fleeing the sinking ship. This allowed to brands like Ashdown, to come and take the free place. Ampeg lost decades of growth and, probably, lot of his image in this campaign.

Look at Marshall. Their england made models of the good era are costing a fortune now on the collector market and always work, even 60 years after production. Now, their asian amps are after-sales nightmares, and start to break after one year of use and their image in the knowledgeable guitarist public is ruined.

Look at Apple. They delocalized their production of computers in slave labour factories. Consequence was an image loss (remember the anti-suicide nets ?), the more intelligent and humans customers of the brand swapped to other brands, and a real quality and craftmanship loss occured. The older Imacs made in the USA are always running today, even when used daily. Now, apple is re-localizing in the US.

Look at the lingerie disaster in Portugal. Every great brand they had delocalized to china during the textile boom. But the chinese didn't had the knowhow and the experience of this fine work, an art of doing that was everywhere in Portugal. Now, luxury industry try to relocate to portugal, but the result are disappointing because the good workers are now vanished in other jobs or countries.

Generally, the rule could be, you can delocalize cheap consumer electronic, but you can't simply delocalize quality products with strong country image and knowledgeable crafters.

Even chinese peoples are buying Tannoy beause of it's european image. Do you believe they would buy a Tannoy whatever for 8'000 Euros in the knowing, it was made in Zhongshan for not even 500 bucks ?

It's a programmed disaster that is going to occur. If Tannoy closes his factories in England, they are basically dead.

Graham Luke's picture

Salt of the earth...

I wish everyone would stop knocking the Chinese; they're lovely people. No, really.

I mean look at them decimating the world's elephant population for ivory whilst massacring as many tigers and rhinos as they can for help 'makey jiggy-jiggy' and then there's their peaceful encroachment into the South China Sea...

What's not to like?

Salt of the bloomin' earth, innit?!?

Graham Luke's picture

Oh ,an' while I'm at it...

...what a shame that intrusive pop-up adverts for a certain German auto manufacturer (one that specialises in vehicles for ****ers) is all but ruining my experience of using this site.


citcx's picture

Quality Chinese Merchandise......

.... now that's not something you hear everyday...