GKN has announced plans to close Birmingham’s auto parts factory, putting more than 500 jobs at risk.
The company has owned the site since the 1960s, and news of the closure follows the Association of Auto Manufacturers and Traders (SMMT) figures showing that last year’s car production was at its lowest level since 1984.
“These numbers, the worst of generations, reflect the devastating impact of the pandemic. However, the industry is facing optimism in 2021, but it is clear how the vaccine will be rolled out and how it will be traded with Europe. SMMT CEO Mike Hawes said.
GKN has denounced the closure of the “increasingly competitive” global market. The Birmingham plant produces components for Nissan and Jaguar Land Rover.
A group spokesman said: “Proposing this closure is a difficult decision made despite significant efforts and investment over the past decade to reduce the high operating costs at the Birmingham Council site. Sadly, more and more. A global market with increasing competition means that sites are no longer viable.”
Unite, a labor union, says the factory is expected to close in 18 months. “The workforce is shocked and angry to learn that management is about to close this highly viable site,” state executive Des Quinn said.
“Unite now seeks an urgent meeting with senior GKN managers and understands this decision and the logic behind this decision,” he added.
GKN was purchased in 2018 by turnaround specialist Melrose in a £8 billion acquisition.
