Shropshire Star

Stadco factory closure would be 'devastating' for town

The planned closure of a Mid Wales town's biggest employer has been described as a "devastating blow".

Published
Last updated
Stadco's Llanfyllin plant is at risk of closure

Car parts manufacturer Stadco has announced plans to close its Llanfyllin site, a move that would lead to the loss of 129 jobs.

The company is also planning to make workers redundant at its Telford factory, with 40 jobs at risk. The decision has come from Stadco's parent company Magna International, which wants to restructure its UK operation.

Llanfyllin's county councillor Peter Lewis said the news had come as a shock to the workforce and the community, and would have a devastating impact on the town.

He said: "They have invested a lot of money there over the last year and we thought it was quite secure.

"They were planning more investment this year and it was looking good for the future.

"I don't know if it is Covid or a general downturn in the car market but it is awful news"

Councillor Lewis said he would be joining with Montgomeryshire's MS and MP, Russell George and Craig Williams, to lobby government over support for the workers, and would be looking to arrange a meeting with Stadco management.

Safeguard

It is understood that the proposal is for the Ffordd-y-Cain plant to close within 12 months.

Mr George said they would be making every effort to try and get the company to reverse its decision.

He said: "This has come as a complete shock to the workforce and at totally the wrong time as we all deal with the effect of the Covid-19 pandemic on our lives and livelihoods. It will come as devastating news to the 129 workers at Stadco and their families.

"During the consultation period, I will be working with my colleague, Councillor Peter Lewis to make representations to Stadco and its parent company, Magna International, in an effort to safeguard these important manufacturing jobs for the Llanfyllin community.

"Stadco is too important as a major manufacturing company in North Powys to allow it to close without making every effort to find a workable solution."

Mr Williams said he would be using all avenues possible to try and support workers and contact Stadco's parent firm.

He said: “This is devastating news, and has come as a complete shock to the community. I am currently working with the Foreign & Commonwealth Office to establish the status of Stadco’s parent group Magna in Canada, and am pulling together resources from the UK Government and the DWP to determine what support can be put in place for workers.

"I am also working closely with Russell George MS and Cllr Peter Lewis over Welsh Government support.”

Councillor Lewis said that workers at the factory were concerned about the future with the job market under considerable pressure as a result of the pandemic.

He said: "I have had a lot of messages and people are devastated, saying 'what do they do now'. A lot of people are already getting laid off after furlough. I feel for them and their families so we need to do what we can to try and help."