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Denso set to axe 175 jobs
Friday 20th March 2009, 2:26PM GMT.
Exclusive by Business Editor Amy Bould
Up to 175 workers are to be made redundant at one of Telford’s biggest manufacturers, it was revealed today.
Car parts firm Denso blamed the global downturn in the automotive industry for the job losses, which will affect between 145 and 175 employees.
This afternoon’s news comes as official figures showed that the number of new cars produced last month in the UK crashed 59 per cent.
The shock figures from the Society of Motor Manufacturers and Traders revealed how with vehicle companies cutting back drastically on production, just 59,777 cars were made last month, representing a huge drop on the February 2008 total.
Bosses at the Hortonwood firm made the announcement today following a period of consultation with workers and said employees, known as associates, across all areas of the plant would be affected following a dramatic slump in orders.
Hayashi Suzuki, managing director of Denso Manufacturing UK, said: “Denso invest heavily in our associates’ training and development, so redundancy is always a last resort. We must take difficult decisions now to ensure DMUK’s long term future in Telford and to ensure our ability to respond when the economic situation improves.”
The automotive component manufacturer said the redundancies were planned as part of an ongoing consultation process.
A statement from the firm said: “After consultation with the plant’s elected employee representative body, the working consultation group, between 145 and 175 employees will be affected across all areas of the plant.”
Following the announcement, Wrekin Tory MP Mark Pritchard said: “This is another huge blow to Shropshire’s manufacturing base. It is important that the Government takes urgent action to stimulate demand in order that other manufacturing jobs can be saved for the future.”
Denso, which has been in the town since 1992, employs almost 900 people.
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The reduction in jobs at Telford Denso plant is the reason that Shimizu Telford plant is closing. Shimizu UK is mainly owned by Denso and supplies their plastic parts. The Telford Shimizu plant is closing in preference to the Welshpool plant as Telford has no room for future expansion and is constricted by roof height.
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