Toyoda Gosei: Hundreds of jobs at risk at car parts plants

Far fewer workers than normal have clocked on at Swansea following the announcement Toyoda Gosei is leaving the UK

Hundreds of car parts jobs are set to be axed after a firm announced it was pulling out of the UK.

Toyoda Gosei UK's plants at Gorseinon in Swansea and Rotherham in South Yorkshire employ 458 people.

The company, which produces components for Toyota, Nissan, Renault and Honda, said it was responding to changes in the global sector and a "significant reduction" in UK customer demand.

A formal period of consultation with employees is under way.

There are 207 people permanently employed at the Swansea site and 251 in Rotherham, the company's UK headquarters.

The Swansea site, which opened in 2011, makes moulded and painted car parts, while the Rotherham plant manufactures rubber body sealing products and opened in 1999.

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"We understand and regret the uncertainty that this will cause for everyone at the Swansea and Rotherham sites and are doing all we can to support our employees throughout the consultation process," said Toyoda Gosei UK (TGUK) managing director Shigenori Matsuo.

TGUK originally opened its Swansea plant with 160 workers, before the workforce became 800 strong in 2015.

The firm received £116,000 from the Welsh government's Economic Resilience Fund (ERF) in December 2020 to help safeguard jobs against the effects of the coronavirus pandemic.

TGUK said it was working with its parent company Toyoda Gosei to discuss the future of the UK operation.

The company took over the plant in Swansea in 2011

"There isn't one factor that has resulted in the announcement today," added a spokeswoman.

One Swansea plant worker, who did not want to be identified, told BBC Wales he was very worried about paying his mortgage and the implications for his family losing his job would have.

He did not attend a meeting at which the details were given to employees, but when he arrived at work later many of his colleagues were visibly upset and crying.

At the scene in Swansea

David Grundy, BBC Wales

The 14:00 shift change has just happened at Toyoda Gosei's Gorseinon plant. Hundreds of workers would usually be going home, but this afternoon just 10 workers have left the site.

They kept their heads down as they walked through the main gates. Only one worker said anything to me, saying: "We're not allowed to speak to you."

The company said it had previously reorganised its business in Europe, selling shares in a German subsidiary and moving some production to its main manufacturing site in the Czech Republic.

Sarah Champion, MP for Rotherham, said the news had come "out of the blue" and was deeply disappointing, adding she would support the workers through "this hugely stressful time" and try to secure the plant's future.

'Big player'

"The timing couldn't be worse, people are struggling to cope with the consequences of the pandemic and trying to get back on their feet," she said.

Toyoda Gosei UK has its headquarters in Rotherham

Andrew Denniff, from Rotherham and Barnsley Chamber of Commerce, said the firm was a "big player" in the town and its loss would have a huge impact on families, as well as the UK.

"The impact of Brexit has now become an unpleasant reality," he added.

A Welsh government spokesman said it was a worrying time for the workers, adding: "We have been in contact with Toyoda Gosei about their plans to consult on the potential closure of the company's Swansea site.

"We will remain in contact with the company during the consultation period."

He said any money from the ERF grant not used for the purpose stated, or in line with the terms and conditions, may need to be repaid in full or in part.