Automotive supplier TRW is to close its factory in Washington, Tyne and Wear, with the loss of more than 180 jobs.
The decision to close the plant, which makes valves for Volkswagen, Audi and Ford engines, shocked employees and unions last week, because it was widely believed to be profitable.
Val Scott, GMB trade union officer, said: “In 2008 there was some heartache but the last six months have been quite the opposite. The workforce is gutted because they can’t understand the decision. They were told recently that they were meeting targets and were profitable.”
John Wood, TRW plant manager, said: “This hasn’t been an easy decision and has been made harder because of the efforts our employees have made to turn the plant around.”
TRW said it planned to consolidate the plant’s production within other facilities across Europe. Closure is set for May.
Wood said: “The potential site closure is due to relentless global competition, significant overcapacity in this market and the need to improve the overall competitiveness of engine components to attract future business.”
It is believed that some production will move to a plant in Germany, widely believed to be suffering from product quality issues.
Scott said: “We know the company has been stockpiling German product due to quality issues there.”
The GMB said it had asked TRW to provide detailed financial comparisons of the plant’s performance with that of its overseas counterparts.
It is understood that Fraser Kemp, Labour MP for Houghton and Washington East, has approached business secretary Peter Mandelson about the factory’s future.
© PE Publishing, 10 March 2010
