Fears for jobs as car factory work ‘on hold’
Ineos reportedly looking at new site in France:
INEOS has put work on its Welsh and Portuguese car plants on hold while it talks to Mercedes-Benz about buying an existing facility in France.
The plans to make the Grenadier vehicle in France jeopardises the creation of up to 1,000 jobs in the UK.
The company had announced last year that it would build its new factory next door to the Ford plant in Bridgend which closes in September.
But now it is reported that the firm is looking at a site in France that would mean it wouldn’t need to build the factory in Wales and another in Portugal.
Under Ineos’ original plans, Portugal would make the body parts, which would then be shipped to Wales and assembled in a new custombuilt facility.
In a statement, the company said: “Ineos Automotive can confirm that it is reviewing its manufacturing strategy for the new Grenadier in light of the Covid-19 pandemic – which has led to some delays in our development plans, but has also presented some new opportunities in terms of existing manufacturing capacity that were not previously available to us.
“Specifically, Ineos Automotive has entered detailed discussions with Mercedes-Benz on the acquisition of its Hambach site in Moselle, France.
“We have therefore suspended the post-lockdown resumption of work at our sites in Wales and Portugal pending the outcome of this review. Further updates will follow in the coming weeks.”
The potential loss of the two sites is a hammer blow to the 1,000 workers in both countries who had expected to be hired for the project.
Economy and Transport Minister Ken Skates said he was “incredibly disappointed” by the news.
“I have told the CEO that abandoning Bridgend at this late stage, after so much effort and money has been invested in preparing the site, would be a terrible decision for Wales and the UK,” he said.
“We have worked closely with the company in good faith to secure the site in Bridgend and it would be a real blow if Ineos reneged on its very public commitment that it would be locating here.
“We have impressed on the company in no uncertain terms the importance of honouring its commitment to Wales and to deliver on its promise to build a British icon here in Britain.”
Ineos Automotive is understood to have struck a deal with Daimler to take over a factory site in Hambach in north-eastern
France for its Grenadier project.
Last week it revealed the first images of its new off-road vehicle, with clear design references to the old Land Rover Defender.
Production was scheduled to commence next year, in a timely investment for the automotive sector in Wales.
The factory was planned to be built on the 100-acre Brocastle site, which is owned by the Welsh Government, next to Ford factory.
The Ineos project was secured with promise of a significant financial package of support from the Welsh Government, but with backing also from the UK Government’s department for Business, Energy and Industrial Strategy.