World engineering agency GKN Automotive will shut its manufacturing facility in Birmingham inside the subsequent 18 months, ensuing within the lack of 519 jobs.
In a letter to workers seen by Birmingham Reside, firm CEO Liam Butterworth stated “an more and more aggressive world market implies that the location is not viable”.
He continued: “Supporting our folks is our first precedence as we seek the advice of on this proposal. Workers on the website are being notified at the moment and assist is being made accessible to them all through this course of. We’ll then begin a interval of session with the union and worker representatives within the coming weeks.”
The location, certainly one of 56 GKN services worldwide, is used as a driveshaft meeting facility. Its closure follows the 2018 takeover of GKN by funding agency Melrose Industries for £8.1 billion.
The takeover was opposed by employees’ unions and MPs on the idea that it made funding within the agency much less viable, thereby decreasing spending budgets and limiting its potential.
GKN had campaigned to stay impartial, however shareholders agreed to promote to Melrose following 5 years of falling profitability and a high-profile management shuffle.
Operations in Birmingham will now be wound down over the course of 18 months, earlier than being divided throughout GKN’s different European websites. Not one of the firm’s different UK services are affected by the transfer.
Jack Dromey, Labour MP for Erdington – the place the manufacturing unit is positioned – commented on the information of the closure: “Regardless of all the nice and cozy phrases by Melrose in 2018 to guard the long run prosperity of GKN and its British workforce, the chilly actuality three years on is that certainly one of GKN’s most interesting crops now faces closure. Melrose promised a vivid future to GKN’s workers – a promise they’ve now damaged.
“This announcement is totally surprising by workers at GKN. Working along with their commerce union, Unite, I will probably be searching for an pressing assembly with the corporate.”
GKN was fashioned in 1759 and has been closely concerned within the development of Britain’s aerospace and automotive industries.
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