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18/09/2003
Plant closure to see 600 jobs go in Leeds
More than 600 jobs are to go after Hydro Aluminium Motorcast announced that it is to close its Leeds plant.
The company said that the announcement follows "a decade-long battle to win fresh orders" for its specialist automotive components against "fierce global competition". The plant is part of the Castings business unit in Hydro Aluminium Automotive.
The company has launched a consultation process with its 612 staff during a series of meetings held this morning at its Clarence Road plant. Operations will cease in early 2005 if the proposals are accepted – with all employees, including local directors, being made redundant.
Under the closure proposal, around half the jobs would go in 12 months, with operations gradually phased out over the following six months.
Steve Watson, operations director with Hydro Aluminium Motorcast, said: "It is with deep regret we have proposed the plant's closure. It is extremely saddening to have to deliver news of this nature to employees. All of our workforce has demonstrated unswerving loyalty over many years and has done its best to help the company try to meet the challenge of competing against cheaper foreign-made products.
"The simple truth is that there is global over-capacity in the automotive components industry and we cannot compete against cheaper competitors based abroad. Like many British engineering companies facing similar pressures, these factors have worked against us too often and for too long. We have not won any new orders for five years or reported a profit since 1997. Production volumes have been decreasing since then."
All but one of Hydro Aluminium's existing contracts will have been fulfilled before the proposed closure.
The firm produces cast aluminium engine blocks and cylinder heads for a number of carmakers, including General Motors and Ford. The contracts that will be fulfilled before the proposed closure are for components of engines that are being phased out. At least some of the cylinder heads for the new engines are being made abroad.
"Our aim now," said Mr Watson, "is to ensure we work closely with employees and their representatives on all aspects of the proposed closure as well as meeting our remaining contractual requirements."
(gmcg)
The company said that the announcement follows "a decade-long battle to win fresh orders" for its specialist automotive components against "fierce global competition". The plant is part of the Castings business unit in Hydro Aluminium Automotive.
The company has launched a consultation process with its 612 staff during a series of meetings held this morning at its Clarence Road plant. Operations will cease in early 2005 if the proposals are accepted – with all employees, including local directors, being made redundant.
Under the closure proposal, around half the jobs would go in 12 months, with operations gradually phased out over the following six months.
Steve Watson, operations director with Hydro Aluminium Motorcast, said: "It is with deep regret we have proposed the plant's closure. It is extremely saddening to have to deliver news of this nature to employees. All of our workforce has demonstrated unswerving loyalty over many years and has done its best to help the company try to meet the challenge of competing against cheaper foreign-made products.
"The simple truth is that there is global over-capacity in the automotive components industry and we cannot compete against cheaper competitors based abroad. Like many British engineering companies facing similar pressures, these factors have worked against us too often and for too long. We have not won any new orders for five years or reported a profit since 1997. Production volumes have been decreasing since then."
All but one of Hydro Aluminium's existing contracts will have been fulfilled before the proposed closure.
The firm produces cast aluminium engine blocks and cylinder heads for a number of carmakers, including General Motors and Ford. The contracts that will be fulfilled before the proposed closure are for components of engines that are being phased out. At least some of the cylinder heads for the new engines are being made abroad.
"Our aim now," said Mr Watson, "is to ensure we work closely with employees and their representatives on all aspects of the proposed closure as well as meeting our remaining contractual requirements."
(gmcg)
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