We are united in opposition to GKN takeover - Telford & Wrekin Council
Telford & Wrekin Council is united in its opposition to the takeover of GKN by Melrose, its leader said today.
Councillor Shaun Davies said the council would continue to lobby ministers to intervene.
Around 400 jobs are at stake at GKN's wheels and structures plant in Hadley, Telford.
While Melrose is likely to commit to not selling GKN's aerospace arm, it has made no such commitment to the branch based in Telford.
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Telford & Wrekin Council is urging Business Secretary Greg Clark to stop the takeover. It has also been backed by Telford's Conservative MP Lucy Allan.
Councillor Davies said today: “The council has unanimously agreed, cross party, that the secretary of state should call this decision in and block it on the grounds of national security.
“We believe the work that GKN does in the defence sector is of strategic importance and the business model of the new owners would effectively asset strip GKN and put pensions and jobs at risk.
“These are well paid jobs and as a council we have supported businesses like GKN to stay in the borough but what is clear is the uncertainty around GKN not just in Telford but around the country.”
Mr Clark is expected to listen to advice from the Ministry of Defence in the coming days and weeks before deciding whether to intervene.
It is believed he may force Melrose to sign legal agreements promising not to sell GKN’s crucial aerospace division.
Defence Secretary Gavin Williamson, who is MP for South Staffordshire, expressed “serious” reservations in February.
Sources close to the minister say he is particularly concerned over sensitive contracts held by GKN and that he stands by the comments he made before the takeover.
