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Telford-based DENSO set to axe 60 jobs

By James Pugh | Telford | Business | Published:

About 60 jobs are set to be axed at car parts giant DENSO Manufacturing UK which has been hit by a fall in demand for new vehicles as a result of Covid-19.

DENSO's site in Hortonwood, Telford

The manufacturer, which is based at Hortonwood in Telford, has confirmed it has began consulting with staff about restructuring plans to help secure its long-term future.

The company, which produces radiators and air conditioning units, said the overall downturn in UK demand for new cars has led to the need for the restructure to strengthen its competitiveness in the industry.

Mark Hayward, managing director of DMUK, said: “We must consider that our business can remain both flexible and resilient to meet both the innovation and competitiveness challenges of our industry and any undermining threat to it. We are undertaking the necessary steps to ensure we can enable a sustainable and long-term future."

Ian Trennan, head of human resources at DMUK, added: "We can manage the impacts of our long-term strategic plans and any environmental threats, largely through our existing temporary workforce structure, however regrettably there may be additional job losses – circa 60 – across the organisation and we are now consulting with the workforce on our restructure plans and we are executing a voluntary process at this time."

Denso employs about 800 people in Telford and has Toyota, Jaguar Land Rover, BMW and Honda amongst its customers.

In 2018 it unveiled its new skills promotion centre at its Hortonwood facility, which became its training base for its employees.

In a letter to its employees, Denso said: "We have continued to evaluate the impact on our business as a result of the pandemic crisis and the severe reduction in customer sales.

"The immediate outlook over the next months and throughout the year shows some continued recovery, but not to the previous levels.

"The future would seem to be a level out at a 'new normal' for our business, which even though becomes lower, gives good reason for optimism in the future, as market confidence can be restored and new developments are realised through 20201 and beyond."

James Pugh

By James Pugh

Shropshire Star Business and Farming Editor.

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