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500-plus job losses at Delphi will not affect its Gloucestershire business

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Written by: Western Daily Press | Posted 09 August 2017 7:38

500-plus job losses at Delphi will not affect its Gloucestershire business

A decision to relocate to Romania by engineering giant Delphi, which has a major base in Gloucestershire, could result in 500-plus job losses.

The good news for those working for the global supplier of vehicle technology is the decision will not impact on the firm’s Stonehouse plant.

When news broke that a predicted fall in demand for diesel vehicles was being blamed for the closure of its Suffolk engineering plant with the loss of 520 jobs thoughts automatically turned to Gloucestershire, where it employs an estimated 1,000 staff.

Would it be next in line?

“No,” was the short answer, from Richard Gotch, the UK spokesman for Delphi.

“You need not worry about the Stonehouse plant. One of the things we are doing in relation to the Suffolk plant is to see if any of the staff want to transfer down to work at Stonehouse.

“It is a fantastic plant with some really good people there who do incredible precision work. And the work it does to train and bring through the next generation of engineers is outstanding.”

It is expected as much as 20 per cent of the workforce from the doomed plant could be transferred to bolster the Gloucestershire operation.

The US-headquartered components supplier announced on Friday it would be closing Delphi Diesel Systems manufacturing operations in Sudbury by mid-2020.

Its core product at the plant is diesel fuel injectors and filters for commercial vehicles.

“The decision is the result of predicted falls in the demand for diesel vehicles. Independent analysts predict a substantial decline in the diesel light vehicle market and no significant growth in the much smaller diesel commercial vehicle market,” a spokesman told the Financial Times website and newspaper.

The newspaper write that Boston Consulting Group had estimated that “in western Europe, which accounts for nearly half of global light vehicle diesel production today, diesel market share would drop from 47 per cent now to 36 per cent by 2021, and 24 per cent by 2024”.

Despite what Delphi called the “outstanding efforts” of its Sudbury employees, it had been impossible to raise the site’s competitiveness to a level at which it could win new business.

According to the firm’s website its UK facilities are located in Gloucestershire, Kent, Warwickshire, Suffolk, Merseyside and London, with capabilities in manufacturing, engineering technology, and the diesel aftermarket. Some highlights of Delphi UK activities include.

Its Stonehouse facility specialises in high-precision machining to sub-micton tolerances in addition to testing and assembly.

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