News: German auto manufacturer to close Rotherham plant

Global automotive and industrial supplier, Schaeffler, has announced proposals to close its factory in Rotherham due to declining global demand for clutches.

Production will instead shift to Hungary and India.

The board of the Schaeffler Group, a German manufacturer of rolling element bearings for automotive, aerospace and industrial uses, has announced structural measures for Europe aimed at securing a long-term increase in the company’s competitiveness.

For the UK, the measures include plans to discontinue the operation at Waleswood, which is in Rotherham.

The site produces clutch systems with most of the production for passenger cars, although some is for tractors, and most of it is exported. An update from Schaeffler explained that: "declining global demand for clutches is leading to production overcapacity."

Advertisement
The update reads: "The shift towards automatic transmissions in ICE [internal combustion engine] cars and the powertrain electrification trend have resulted in significantly reduced demand for passenger cars with manual transmissions. This development is also leading to considerable overcapacity in Sheffield [Rotherham]. Schaeffler therefore intends to locate its production of passenger car clutches in Szombathely, Hungary.

"In addition, the company’s production operation for tractor single and dual clutches in Sheffield will in future be sited at its plant in Hosur, India, where demand for these products is increasing. This will reduce production and transportation costs and expand Schaeffler’s production capacity in a growing market."

Subject to consultation, Schaeffler is planning to close the Waleswood plant and transfer employees in the unaffected central functions there to its existing office in Birmingham.

Matthias Zink, Schaeffler’s CEO Powertrain & Chassis, said: “These carefully considered measures will align Schaeffler’s clutch production network with market demand. Discontinuing production in Sheffield and consolidating our clutch production operations will safeguard the competitiveness of our global clutch business and deliver benefits to our customers. Having said that, we are mindful of the consequences of these measures and will now do everything we can to work with our employees in Sheffield to develop fair solutions.”

In 1987, LuK GmbH acquired Laycock Engineering Limited and started planning a purpose built factory in South Yorkshire. It opened on Waleswood Road, close to the M1, in 1989.

The Rotherham plant was saved from closure in 2018 when Schaeffler announced restructure plans for the UK influenced by uncertainties over Brexit. At the time Rotherham was the biggest of Schaeffler's UK locations in terms of revenues and employee numbers and plants in Llanelli and Plymouth were earmarked for closure.

Schaeffler website

Images: Google Maps

Read more...

News: Rotherham plant saved as German auto manufacturer announces restructure

Global automotive and industrial supplier, Schaeffler, is keeping its factory in Rotherham open as part of restructure plans for the UK influenced by uncertainties over Brexit.

The executive board of the Schaeffler Group, a German manufacturer of rolling element bearings for automotive, aerospace and industrial uses, has decided to reorganise its activities in the UK which will lead to the closure of sites in Llanelli and Plymouth.

Schaeffler currently has three plants in the UK, in Plymouth (Barden Corporation Ltd.), Llanelli and Rotherham, and two logistics centres, in Hereford and Sutton Coldfield. The UK locations have a total workforce of just over 1,000 people.

Rotherham, the biggest of Schaeffler's UK locations in terms of revenues and employee numbers, will be retained in its current form.

The plant at Waleswood assembles clutches for passenger cars and tractors and was previously part of the firm's LuK brand. It supplies the likes of Nissan and Toyota.

It is proposed to close the Llanelli and Plymouth sites in the medium term and relocate production to existing plants outside the UK, in the US, China, South Korea and Germany. The two logistics centres are set to be combined.

Advertisement

In a statement, Schaeffler said: "The global footprint analysis focused on how best to structure the business in the UK based on various factors including economic conditions, supply and demand, and the decisions OEMs are making. It also took into account that only 15% of the goods Schaeffler produces in the UK remain in the country, while the vast majority is exported to continental Europe. The uncertainty surrounding Brexit was one factor amongst others in the analysis of the UK market."

Juergen Ziegler, regional CEO Europe at Schaeffler Group, said: "A global business needs to regularly review market conditions and strive to optimise its footprint across different regions. The proposed measures we have taken for the UK reflect this business reality. However, we remain committed to keeping certain activities in the UK, a country that will continue to be important to us.

"The changes to our UK footprint are designed to make us more efficient by relocating parts of our production closer to where our products are used. What we are planning for the UK delivers on our "Agenda 4 plus One" programme. Brexit is clearly not the single decisive factor behind our decision-making for the UK market, but the need to plan for various complex scenarios has brought forward the timing."

In 1987, LuK GmbH acquired Laycock Engineering Limited and started planning a purpose built factory in South Yorkshire. It opened on Waleswood Road, close to the M1, in 1989.

Schaeffler UK website

Images: Schaeffler / SMMT

Read more...

News: Rotherham firms help Yorkshire plc rev up for growth

A number of top Rotherham businesses are amongst Yorkshire's largest 150 companies, that together have amassed more than £10.4bn cash in the bank, according to analysis from accountancy and business advisory firm BDO LLP in Yorkshire.


The BDO Yorkshire Report 2014, now in its eighth year, which compiles the latest published accounts from Yorkshire's largest 150 businesses based on revenue, analyses trends and acts as a barometer of health for the region.

Rotherham firms that make it into the top 150 include CF Booth, AESSEAL (pictured), London & Scandinavian Metallurgical Co Ltd (Now called AMG Superalloys), Maplin, LUK (UK) Ltd, JELD-WEN UK and ABS Industrial.

Companies' war chests have increased sharply by 22% on last year's figures, with cash reserves now at their highest level since records began in 2007, providing a sure fire signal that M&A activity could flourish over the next few years.

Yorkshire's biggest businesses have also boosted growth prospects by increasing investment by a further £500m, taking total investment expenditure in property, plant and machinery to almost £3.5bn in the reporting period.

Advertisement
The report also found that the top 150 saw revenues increase to £90.7bn, from £88.7bn last year and £83.8bn the year previous. Operating profits increased by 5% to £4.56bn and a more focused effort on overseas markets saw international sales grow by £1.7bn, up 7.7% to more than £12bn.

Terry Jones, partner and head of BDO LLP in Yorkshire, said: "There is an overwhelming feeling of confidence across the region and the figures in this year's report confirm that growth is firmly back on the agenda.

"Having built up cash reserves during the last few years, the challenge now is for management teams – many of which may not have the experience in dealing with a "positive" cash crisis – to have the confidence and expertise to choose where to invest.

"It's a challenging prospect having spent the last four to five year's heads down firefighting, but businesses must look forward and seize the opportunities a recovering market presents. This year's success stories will come from those brave enough to invest three-fold; in talent, technology and international markets."

The contribution of manufacturing to the group increased during the year, with employment per company up 9% and overseas sales rising nearly 10%. Of the Rotherham firms, only electronics retailer Maplin is not in the manufacturing sector.

The number of manufacturers in the top 150 rose to 34 (from 31 last year), generating more than £10bn in revenue (£1bn more than last year).

BDO website

Images: AESSEAL

Read more...