German manufacturer Schaeffler to close two UK factories because of Brexit

More than 500 jobs at risk as company ‘brings forward the timing’ of its decision

The firm makes car parts and employs more than 1,000 in the UK (Reuters)

A manufacturing firm is to close two sites in the UK, with “uncertainty” surrounding Brexit given as one factor behind the decision.

Automotive and industrial supplier Schaeffler said the sites in Plymouth and Llanelli, South Wales, will close within two years. It is understood that up to 500 jobs could be affected.

The news comes as Michelin unveiled plans to close its Dundee site, with the loss of almost 850 jobs.

German-owned Schaeffler said production will be relocated to the United States, China, South Korea and Germany.

The company, which employs just over 1,000 workers in the UK, said its biggest site in Sheffield will be retained in its current form.

Work at two logistics centres in Hereford and Sutton Coldfield will be combined at Hereford.

Juergen Ziegler, Schaeffler’s regional chief executive for Europe, 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.

“Brexit is clearly not the single decisive factor behind our decisionmaking for the UK market, but the need to plan for various complex scenarios has brought forward the timing.”

Greig Littlefair, managing director of Schaeffler UK, said: “We are committed to having transparent and fair discussions with the employees affected by these proposals. We will also ensure our customers continue to be served and that these proposed changes create minimal disruption for them.”

The Plymouth site mainly produces spindle bearings and machine parts for the firm’s industrial division, while parts for car companies are manufactured at Llanelli.

PA