GKN rejects business plan to secure Birmingham factory’s future

GKN Automotive has rejected the alternative business plan presented by workers at its Birmingham plant to keep the factory open and save more than 500 jobs.

A campaign to save the facility was launched in January when venture capital firm Melrose, which bought GKN in 2018, announced that it would close in 2022, despite promising to create a “British manufacturing powerhouse”.

Earlier this month a committee comprising members of union Unite and local management at the factory presented an alternative business plan, setting out a what they say is a viable long term future for the site.

But today, while praising the content of the alternative business plan, GKN Automotive rejected its findings and stated that they wished to move forward to the next stage of the consultation process.

The Unite convenor at the plant, Frank Duffy, said: “This is a deeply disappointing response from GKN Automotive.

“Unite entirely rejects the false notion that there is not a long-term viable future for the GKN Birmingham factory.”

Unite national officer for the automotive sector, Des Quinn, said: “Unite calls on all interested parties including central government, local government, the supply chain, customers and GKN Automotive to come together and ensure the factory’s future.

“The UK’s automotive sector needs e-drive suppliers and a sustainable supply chain or the entire UK automotive sector is at risk of collapse.

“GKN Birmingham has the ability to supply the e-drives that the UK’s automotive sector desperately needs, it just needs the vision, support and investment to ensure it has a crucial role to play in the electrification of UK vehicles.

“In order for the electrification of cars to be a success in the UK, it is essential that GKN remains open and full functioning and in order for that to be achieved it needs government support.”

Jack Dromey, MP for Birmingham Erdington, said: “This decision is devastating for the 519 workers at the Chester Road plant. The workers, supported by the union, Unite, worked tirelessly to produce a comprehensive and detailed alternative plan to closure. It is therefore fundamentally wrong that GKN/Melrose have now called time on the consultation process and instead intend to push ahead with closure.

“GKN Chester Road is vital, not just to Erdington and the West Midlands economy, but also the whole automotive industry in the UK. If the plant were to close, it would be a betrayal of the 519 workers, of British automotive and the British national interest.

“I will therefore be seeking urgent discussions with the chief executive of GKN and also the Government, who have publicly indicated their commitment to offer support to allow the plant to remain open.

“The workers at GKN and their union, Unite, are determined to keep the plant open. As their MP, they have my total and unending support.”