Western Daily Press (Saturday)
Honda site sold to give hope to 1,000s
Developer buys car maker’s factory and pledges £700m investment:
JAPANESE car giant Honda has confirmed it is selling off its Swindon factory to Europe’s largest developer of new-build industrial and logistics facilities – with the hope that thousands of jobs will be created.
The carmaker, which has owned the Wiltshire plant since 1985, has agreed the deal with Panattoni, which has vowed to invest £700 million in the site at South Marston.
Honda announced plans to close the Swindon site in 2019 as part of a huge restructure of the company’s global operations.
The shutting of the site in July this year – at the end of the current model cycle of the Civic Hatchback – will see the loss of around 3,500 jobs.
Following the end of production on July 30, Honda said it would start the decommissioning of the Swindon site, which is expected to be legally handed over to Panattoni in spring 2022.
Panattoni is planning to invest millions into the site in a bid to attract new employers and provide space for businesses looking to expand.
The European firm said it would be working “very closely” with Honda and Swindon Borough Council, along with the community and its representatives to regenerate the site.
Jason Smith, director at Honda of the UK Manufacturing, said: “We are pleased to have identified a capable new owner of the site.
“From our engagement with Panattoni and initial discussions with Swindon Borough Council, we are confident that the new owner can bring the development forward in a commercially timely fashion and generate exciting prospects for Swindon and the wider community.”
Matthew Byrom, managing director of Panattoni in the UK, said: “The acquisition of the 370-acre Honda facility demonstrates our capabilities to work at scale.
“The redevelopment of this strategic employment site will deliver thousands of new opportunities in roles which underpin the operation of the local and regional economy.”
Susie Kemp, chief executive of Swindon Borough Council, said the plans outlined by Panattoni would be a “major step” in Swindon’s rejuvenation following Honda’s exit.
“Their investment offers a significant boost to the local economy and we are excited by the prospect of this redevelopment creating thousands of jobs for Swindon and the surrounding area,” she said.
“We already have a strong working relationship with Panattoni following their recent development of the adjacent site, Symmetry Park, and look forward to working with them over the next year.
“We understand that Honda’s key aim was to identify a responsible new owner and I believe today’s announcement demonstrates that.”
Honda said it would assess opportunities for small sections at the edge of the site that are not required for Panattoni’s development to be utilised by the nearby communities.
South West-based chambers of commerce Business West said the announcement was “welcome news” for the town at a time of significant economic uncertainty, but there would be “some disappointment” that an advanced manufacturer was not secured to take over the site.
Phil Smith, managing director of Business West, said: “The past two years since the first announcement of closure in February 2019 have been a period of considerable uncertainty for both workers and Swindon itself, so this is good news and puts an end to much speculation and concern that the site would lie empty.
“We are very glad that the site will be retained for employment use and it appears that the number of jobs created will be equal or greater than currently employed by Honda.
“It is also encouraging that the turnaround into its new use will be quick. It will be a boost for economic recovery in the region over the next two years.”
He added: “Despite this good news, focus needs to remain to ensure new job opportunities are available for Honda associates and the impacted parts of Honda’s supply chain.
“This announcement means this objective will become much easier. Business West will continue to work to ensure employment remains high in Swindon and surrounding areas.”
Unite regional secretary for the South West, Steve Preddy, said: “Unite cautiously welcomes the sale of Honda’s Swindon plant to Panattoni, as well as Panattoni’s pledge to invest £700 million to regenerate the site.
“It is of the utmost importance that all stakeholders, including local and national government, Honda and Panattoni, ensure that manufacturers are given every incentive to make the site their home.
“Swindon and the whole of the South West have a proud manufacturing legacy, especially in industries such as automotive and aerospace.
“Not only is high-spec manufacturing crucial for providing secure well-paid jobs for our communities, but it is also essential for tackling the climate emergency and reaching net zero.”
“These jobs need to come to Swindon and Unite will be knocking on every door and exhausting every avenue to make sure that they do.”
It will be a boost for economic recovery in the region over the next two years PHIL SMITH