Monday, October 27, 2008
Car parts firm announces closures
An automotive firm has announced it is cutting staff and shutting down plants across its global operations.
GKN has 2,500 automotive staff in the UK with headquarters in Worcestershire and two plants in Birmingham and another in Telford, Shropshire.
It is not yet clear how many of the automotive workforce will be affected.
The firm has said it is taking action to stop a predicted pre-tax profits plunge. Its 2,500 strong UK aerospace division is thought to be unaffected.
'Difficult period'
A spokesman for GKN said: "We are now finalising plans to reposition our businesses to deliver acceptable profitability and cash generation through this difficult period."
He added car and light vehicle sales had dropped across the world, hitting its production schedules.
GMB Union spokesman Keith Hodgkinson said the union had been aware for some time of the firm's precarious situation.
"We have in place an agreement with the company that members who wish to opt to leave the company via voluntary redundancy are free to do so and over the last few quarters over 100 workers have taken up this option," he said.
The union was seeking further information from the company, he added.
The company employs 42,000 people worldwide.
DATED: 27.10.08
FEED: AW
