Dundee furniture maker JTC has lifted the threat of redundancies from staff.
There had been uncertainty over the future of more than 300 jobs at its plants at Camperdown Works and Manhattan Works in the city.
Despite a temporary reduction to four-day working, managing director David Rand predicted a bright future for the firm.
“It’s true that there was a threat to some posts but that has now been lifted and there is now no threat of redundancies,” he said.
“Business has gone quiet over the past two or three weeks and we have taken the decision to reduce working hours.
“There is a lot of work in the pipeline, however, and I fully expect us to be back up to speed very soon.
“I want staff to know what is happening so that they do not worry.”
The group, based at Camperdown Works, specialises in fitted kitchen, bedroom and bathroom furniture for major construction jobs and specialist items for clients such as the health service.
It recorded a small pre-tax profit in its last accounts, having streamlined during the previous 12 months to recover from the previous year’s £4.75 million loss.
JTC had been a customer of Dundee construction firm Muirfield Contracts, which ceased trading in March with the loss of hundreds of jobs.
The collapse had a catastrophic impact upon a number of businesses across Tayside and further afield, but JTC hopes to avoid significant harm.
“There has been a slight impact from the collapse of Muirfield because they were a customer,” Mr Rand said.
“Someone has to pick up their work, however, and we are in dialogue with a number of interested contractors and hope to supply them in the future.
“Hopefully the fallout from this will be more of an inconvenience for us.”
Workers for the company had expressed concern at the apparent drop in work.
One said: “It feels like we’re in limbo. Everyone is worried and there are lots of rumours flying about.
“A lot of people have been stressed ever since Muirfield closed.”
While streamlining manufacturing processes and shaking up senior management over the past 12 months, JTC has also been working hard to expand.
It has introduced a number of new products and has also been exploring new markets.
Bosses have also pushed into the potentially lucrative Chinese market, partnering with a local distributor to establish a showroom in the country’s sixth-largest city, Hangzhou, where it hopes to bid for potentially lucrative contracts.