180 jobs at risk as manufacturer mulls plant closure

Up to 180 jobs are at risk as a car component manufacturer considers closing its plant in Telford.

Mahle said its decision was due to a decline in order levels and a “planned reduction in investments and production locations”.

The firm said the Halesfield 25 site in Shropshire was “no longer sustainable” and it was carrying out a collective consultation process, BBC News reported.

Experts said it was “a sign of the times” for the UK automotive industry.

German-based Mahle make engine systems and components used for mobile machinery, rail transport and marine applications throughout the world.

It said declining order levels “are expected to deteriorate even further”.

In a statement, Mahle said: “Against this backdrop, the competitiveness of the location is no longer sustainable despite the continuous investments of recent years.

“Mahle therefore is considering the closure of the production location in Telford and consultations will commence with employee representatives shortly.”

It added it would “explore all possible alternative measures and minimise the potential impact on staff.”

In 2018 Mahle generated sales of over £11bn. It has more than 79,000 employees over 30 countries.