A major Japanese manufacturing company, NSK, has announced plans to close its factories in Peterlee, County Durham. This decision could jeopardize up to 400 jobs, sparking a significant union battle. NSK aims to exit unprofitable sectors, which has triggered consultations with union representatives at the affected sites.
Details of NSK’s Closure Plans
The Peterlee factories, operational since 1976, focus on producing bearings critical for the automotive industry. These components include parts for steering columns and wheel hubs. NSK serves notable clients such as Volkswagen, Renault, and Nissan, which has extensive manufacturing operations near Sunderland.
Union Response and Worker Protections
The union representing the workforce, Unite, has labeled the closure announcement a “betrayal.” General Secretary Sharon Graham stated that workers have consistently met performance targets, believing it would ensure job security. Unite has vowed to vigorously oppose the closures.
- Company Statement: NSK Europe cited ongoing profitability issues with locally manufactured products.
- Projected Closure Timeline: The closure is expected to finalize by March 2027.
- Company Support: NSK indicated they would offer measures for affected employees if the shutdown proceeds.
Challenges Facing the Industry
The automotive sector in the UK is grappling with numerous challenges, including Brexit-related complications and soaring energy costs. Although the Peterlee plant has utilized wind-generated power, the broader industry faces pressure due to diminished demand as manufacturers transition from internal combustion engines to electric vehicles.
Call for Government Intervention
In light of these developments, Unite has urged the government to provide financial assistance to safeguard jobs in the automotive sector. The union believes there is a viable case for maintaining NSK’s operations in County Durham.
This unfolding situation highlights the ongoing challenges faced by UK manufacturers amid industry transitions and economic pressures.
