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900 jobs go in Welsh plant closure this year
publication date: Jan 15, 2010
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author/source: Robin Roberts
Bosch is closing its Welsh plant with the loss of 900 jobs this year.
The alternator factory outside Llantrisant, near Cardiff, will not get a new product which will be made in Hungary instead.
There has been mounting concern over the future of the 20 year old
plant and in October a 90 days consultation was started to discuss
future possibilities.
Yesterday, workers coming onto shifts were told the run-down plan will be finalised by the end of February.The Bosch Group is currently facing the worst economic downturn for many
decades and has been especially hit in the automotive sector. | |  | In parallel to this, the automotive industry is undergoing major change as core technologies are being completely transformed to accommodate demand for smaller, more fuel efficient and less polluting vehicles.
All
this has left its mark on the Bosch Group in 2009, which will show a
negative operating result for the first time in sixty years.
The pressures to reduce cost in the automotive industry in the current market environment have increased considerably in comparison to recent years. For that
reason also, all current production at the Cardiff plant will be transferred to, and
phased-out in Hungary as Bosch must look to achieve a more competitive cost
position.
In comparison to 2008, the sales in 2009 for the current alternator product in
Cardiff dropped by 45%; this is forecasted to decrease by a further 65% in 2010.
Production at the Cardiff plant will be phased out in line with the reduction in
customer demand and the transfer of equipment to Hungary.
The results of Bosch’s investigation into securing a new product for the Cardiff
plant have been communicated to employees, the plant council, union and
representatives of the Welsh Assembly Government today by the President of the
Starter Motors and Generator (SG) division of the Bosch Group, Germany.
The President of the SG division, Mr. Asenkerschbaumer said:
“I deeply regret that we could not find a solution for the Cardiff plant. I have spent
time in a previous role as Plant Manager in Cardiff and I know first-hand the
dedication and commitment of the employees here. Therefore, this is for me
personally one of the toughest decisions in my career. However, with my
responsibility for the whole Starter Motors and Generators division the economic
situation in the market leaves me no other choice.
“Without structural adjustment the long-term commercial future of the whole
division is at serious risk. I am hopeful that the plant management, plant council
and union will achieve a fair agreement and amicable solution for all employees
during the phase out of production at the factory.”
Detailed plans for the next steps will be finalised in consultations by the end of
February 2010. | | | |
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