Car parts supplier Toyoda Gosei to close its sites in Swansea and Rotherham

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Car parts supplier Toyoda Gosei is to close its UK sites, putting more than 450 jobs at risk in Swansea and Rotherham.

Toyoda supplies body sealing components for major car manufacturers including Toyota, Honda, and Aston Martin.

The company confirmed on Wednesday, April 28, that it is closing its UK arm, putting 458 jobs at risk across their factories in Gorseinon, Swansea, and Rotherham.

The company recently took steps to restructure its European operations by moving some of its production to its main site in the Czech Republic which will become a central hub for production following factory closures in Germany and the UK.

It is understood staff working at the South Wales facility were called into a meeting on Wednesday morning and informed that the plant will close its doors in 2023, although this is yet to be confirmed by the company.

A formal period of consultation will now begin to discuss the “proposed changes” with employees, according to a statement from Toyoda Gosei.

The Japanese-headquartered company, which opened its Swansea site over 20 years ago, said it was making the move “in response to continued changed in the global automotive sector, and a significant reduction in key UK customer demand”.

They added that they did not foresee future growth in business in the UK.

A statement from Toyoda Gosei said: “Toyoda Gosei Co., Ltd. announced that Toyoda Gosei UK Ltd. (TGUK) has informed its employees of a proposal to close the business in the United Kingdom (UK). TGUK will now enter a formal period of consultation with its employees regarding the proposed changes.

“The proposal is in response to continued changes in the global automotive sector, and a significant reduction in key UK customer demand. Due to these changes, Toyoda Gosei does not foresee growth of its business there and has decided to make this proposal.

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“Restructuring of its global business is one part of Toyoda Gosei’s efforts to achieve sustainable growth into the future. The company has taken previous steps to reorganize its business in Europe, selling its shares in a production subsidiary for automotive parts in Germany in December 2019 and moving some of production to its main European manufacturing site, Toyoda Gosei Czech, s.r.o. (TGCZ). It will continue to improve productivity and strengthen its European business with TGCZ in a central role.

“Toyoda Gosei will respond swiftly and flexibly to the accelerating changes in the business environment with the aim of achieving sustainable growth into the future”.

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