Auto parts company blamed Brexit for potential plant shutdown, loss of 200 jobs – Car Dealer Magazine

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A South Wales auto parts company could cut more than 200 jobs, as it attributes a potential factory closure to Brexit and Covid.

Kautex Textron said issues caused by Brexit and the pandemic were at the heart of its consultation to close the Ystrad Mynach site near Caerphilly, south Wales, after 51 years in the city.

A company spokesperson said if the decision was made to close the plant, it would work to provide other internal opportunities “to as many employees as possible to mitigate the impact.”

The spokesperson said: “We can confirm that we have started discussions regarding staff cuts and potentially a site closure.

“Brexit, as well as the continued economic impact of Covid-19, are the main contributors to this decision.

“We have no further comments regarding the status as we are currently in a required consultation period with the GMB union and employee forum and will respect the consultation process.”

The factory opened in 1970 and manufactures auto parts, including water tanks and nozzles.

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The company has 30 facilities in 14 countries and is one of the 100 largest automotive suppliers in the world.

The spokesperson said the company, which is headquartered in Bonn, Germany, could not confirm the exact number of employees at its Ystrad Mynach site, but was “a little higher “than the 220 reported elsewhere.

The blame for Brexit

The GMB union blamed the drop in sales due to the global auto industry downturn as well as Brexit on the potential shutdown.

He said the company had told them the potential job losses were “partly due to Brexit” as European carmakers sought to source products from the continent.

He said he would “pull all available levers” to save jobs at the site.

Mike Payne, GMB lead organizer, said: “It came completely out of the blue, nobody expected it, especially not the workforce.

“This is devastating news for workers, the local economy and the entire local community in Ystrad Mynach and Caerphilly.

“From what the company told us, their sales have suffered as the companies to which they supply their products look more locally to source.

“It seems we are seeing more and more high-skilled, well-paying jobs being sacrificed on the altar of Brexit.”

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