Hundreds of jobs at risk as car parts plant closes sites
ACAR parts plant employing hundreds of people is to close its Swansea site. Toyoda Gosei supplies body sealing components for major car manufacturers including Toyota, Honda and Aston Martin.
The company confirmed yesterday that it was closing its UK arm, putting 207 jobs at risk at its factory in Gorseinon as well as 250 at another UK plant in Rotherham.
A formal period of consultation will now begin to discuss the “proposed changes” with employees, according to a statement from Toyoda Gosei.
No final decision on the date of the proposed closure has yet been made, it added.
The Japanese-headquartered company, which opened its Swansea site in 2011, said it was making the move “in response to continued changes in the global automotive sector, and a significant reduction in key UK customer demand”.
It added that it did not foresee future growth in business in the UK.
Shigenori Matsuo, Toyoda Gosei UK managing director, said: “We understand and regret the uncertainty that this will cause for everyone at the Swansea and Rotherham sites and are doing all we can to support our employees throughout the consultation process.
“TGUK remains committed to its customers and will continue to deliver high-quality products while the consultation is under way. TGUK will work closely with its valued colleagues, customers and suppliers to plan for the future”.
A statement released yesterday on the Toyoda Gosei website said: “Toyoda Gosei Co., Ltd. announced that Toyoda Gosei UK Ltd. (TGUK) has informed its employees of a proposal to close the business in the United Kingdom (UK). TGUK will now enter a formal period of consultation with its employees regarding the proposed changes.
“The proposal is in response to continued changes in the global automotive sector, and a significant reduction in key UK customer demand. Due to these changes, Toyoda Gosei does not foresee growth of its business there and has decided to make this proposal.
“Restructuring of its global business is one part of Toyoda Gosei’s efforts to achieve sustainable growth into the future. The company has taken previous steps to reorganize its business in Europe, selling its shares in a production subsidiary for automotive parts in Germany in December 2019 and moving some of production to its main European manufacturing site, Toyoda Gosei Czech, s.r.o. (TGCZ). It will continue to improve productivity and strengthen its European business with TGCZ in a central role.”
Responding to the announcement, a spokesman for Swansea Council said: “Our concerns today are with the workforce and families of those affected at the plant. As a council we will do whatever we can to support them at this difficult time.
“In the meantime we are seeking urgent talks with the company about their plans for the future and we’re working with Welsh Government to consider joint approaches we can take to safeguard jobs and support the staff.”
Reacting to the news yesterday a Welsh Government spokesman said: “This will be a worrying time for workers, their families and the local community.
“We have been in contact with Toyoda Gosei about their plans to consult on the potential closure of the company’s Swansea site. We will remain in contact with the company during the consultation period.”