GKN to shut factory with the loss of 170 jobs

Industrial giant Melrose has been accused of breaking promises made at the time of its £8bn hostile takeover of GKN after revealing plans to close one of its aerospace plants with the loss of nearly 200 jobs.

GKN Aerospace said it had “regrettably” concluded its site in Kings Norton did not have a sustainable future. The decision will affect 170 jobs.

The firm said closure was expected in 2021 and it would look to support employees in applying for other roles.

A Melrose spokeswoman said the decision had been taken by GKN management and denied the decision ran contrary to commitments it made in the face of opposition from MPs and trade unions to its takeover of GKN.

It offered assurances to the business secretary, Greg Clark, including keeping the HQ in the UK, not selling GKN Aerospace before 2023 and maintaining research and development spending.

Rachel Reeves MP, who is chair of the Business, Energy and Industrial Strategy Committee, said it was “difficult to reconcile these commitments with the decision to close the King’s Norton plant”.

She has written to Melrose chief executive Simon Peckham for an explanation for the decision.

She wrote: “Could you please explain the reasons behind the closure and set out where the work there will be carried out in future? How many UK suppliers do you envisage will be affected by this closure? Could you also provide an estimate of how many current employees at King’s Norton will be relocated in other parts of the business?”

A GKN Aerospace spokesperson said: “Having carried out a thorough assessment of our Kings Norton site, including our visible order book, capabilities and cost base, we have regrettably concluded that it does not have a long-term, sustainable future within the business.

“There will be no immediate operational impact. By taking this difficult decision now, we will be able to carry out a carefully managed site wind-down process over a period of more than two years, leading to expected closure in 2021.

“Over the coming months and years, we will seek to support all employees, including the opportunity to apply for roles elsewhere within GKN Aerospace.”

It does not expect any job losses at the site within the next 12 months.

The Unite union said the closure decision “flew in the face” of assurances bosses gave at the time of the takeover.

National officer Rhys McCarthy said: “Unite has real fears that this announcement is the prelude to concerns we voiced – about asset stripping and UK operations being run down during Melrose’s hostile takeover of GKN – being realised.

“Unite is demanding an urgent meeting with senior Melrose bosses and will be scrutinising the business case for these plans.”