Wednesday, April 28, 2021

News: Automotive manufacturer proposes closure of Rotherham facility

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Japanese-owned auto parts manufacturer, Toyoda Gosei UK Ltd (TGUK), is proposing to close the business in the UK - both plants at Rotherham and Swansea are affected.

The company said that its decision was due to changes in the global automotive sector and reduced demand in the UK. Some European manufacturing has already been moved to the Czech Republic.

458 jobs are at risk at the UK plants.

Toyoda Gosei Co., Ltd, which is based in Kiyosu, Japan and celebrated its 70th anniversary in 2019, opened in the UK in 1999, manufacturing weatherstrips for a range of car makers. The Rotherham site at Templeborough was its first in Europe.

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A statement said: "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."

In its most recent accounts, for the year ending March 31 2019, loses at the UK subsidiary increased by £1.5m to £8.4m. Turnover dropped by £17m to £60m due to the end of production on some platforms. The accounts said that this decrease would continue, as would consolidation and a focus on cost reduction.

The accounts added that: "The potential impact of Brexit, further associated customer shutdowns and the new challenges of COVID will impact sales and profitability."

A statement from Toyoda Gosei Co Ltd, added: "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."

Toyoda Gosei website

Images: Google Maps

2 comments:

Unknown April 28, 2021 at 11:04 PM  

CLOSES OUR PLANT. KEEPS EURO PLANT. OBVIOUSLY BREXIT INSPIRED.

Anonymous,  April 29, 2021 at 10:17 AM  

It's always made a loss don't be fooled in to thinking it's Brexit, Bad management and stab in the back tactics don't believe any excuses the company was being given money to keep in the UK from Japanese and they received millions. If you pay peanuts you get Monkeys.

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