GKN to shed 600

The company said its forge facility at Hamstead would close by the end of 2009 and the car parts facility at Walsall by the middle of 2010, with the loss of 323 jobs. And due to what GKN described as “the dramatic and sustained reduction in customer orders”, 150 jobs will also be lost at the company’s auto structures plant at Telford this year. The Group also announced plans to reduce headcount by 91 in its aerospace division – 56 in Burnley and 35 in Luton. Automotive component operations will be consolidated at a single existing plant at Erdington, Birmingham where additional jobs will be created and £7 million invested in modernising manufacturing capability, GKN said. This would secure the long term sustainability of GKN driveline component manufacturing capability in the UK at a difficult time and ensures a competitive UK supply of car parts to its customers in the UK and around the world, the company added. GKN automotive chief executive, Nigel Stein (pictured) said: “The actions being announced today are regrettable but absolutely necessary to respond to the global economic downturn that is particularly affecting the automotive industry. We are in unprecedented times and we must protect our position as a leading global automotive supplier and ensure we are in a strong position to meet our customers’ needs now and when markets recover”. These all form part of the £120 million restructuring costs announced on 28th January 2009.