Walsall engineering firm hit by downturn

The continuing gloom in the economy has led to an engineering company, with an automotive plant in Aldridge, announcing almost 250 UK job losses with more likely to follow.

GKN plc, which produces parts for the car and aerospace industries, said its car businesses were 'severely impacted by the sharp global demand in automotive demand' when it released its trading update last week.

Since October 2008, GKN has released 2,800 staff globally, 242 of whom (95 permanent and 147 temporary) were from the UK as it announced its automotive business was loss making in November and December.

Short-time working arrangements and shut-down periods have also been implemented at all its automotive plants, including its plant in Middlemore Lane West, Aldridge where 320 staff are employed, because of a 30 per cent decline in business.

The company employs around 6,400 workers in the UK with 2,000 in the automotive component sector, the majority based in its four Midland plants at Walsall, Erdington Great Barr and Telford.

The company is expected to announce further details of its economic situation when its preliminary results are announced on February 26.

The GMB trade union's regional secretary, Joe Morgan said: "This is another body blow for an already beleaguered engineering industry.

"We need to discuss the implications of this on a plant-by-plant basis and see if there is any scope for Government assistance."

The company confirmed to the Advertiser that it will now will now start a programme of consultation at its Aldridge plant and future job cuts were inevitable in the current climate.

A spokesperson said: "Our restructuring actions will continue in 2009 and deliver significant cost savings which will help reinforce the group's resilience in the face of the global economic downturn."