106 jobs to go at car parts firm

Stadco's factory in Llanfyllin, Powys, (picture: Stadco)

Stadco employs 153 people in Llanfyllin, Powys

A company supplying parts for the car industry is planning to make 106 of its 153 workers redundant.

Stadco, in Llanfyllin, Powys, blamed the economic climate and a downturn in customer demand.

The firm is in talks with staff and union officials about the move, and said it would make no compulsory redundancies before March 2009.

Consultation with unions and staff at the pressings and panels factory started on Monday morning.

Stadco, which acquired its factory in Powys 10 years ago, has other plants in Castle Bromwich in Birmingham, Coventry, Shrewsbury and Saarlouis, Germany.

A company spokesman said a review was taking place across all of Stadco's factories.

We are trying to reverse the decision so we can retain all of the jobs in Llanfyllin

John Hamilton of Unite the Union

He said the state of the economy and a downturn in customer demand had forced the firm's hand.

Stadco supplies companies including Jaguar, Aston Martin, BMW, and Land Rover, as well as exporting to south America and China.

Last month, it announced a drastic cut in workers' hours at its factory in Shrewsbury, Shropshire.

It offered two and three-day weeks, until next year, to 191 staff.

It said the new hours were a reaction to a temporary drop in customer orders.

John Hamilton of Unite the Union said he was seeking an urgent meeting with Stadco.

"We are trying to reverse the decision so we can retain all of the jobs in Llanfyllin," said Mr Hamilton.

"It's very difficult to replace such high calibre jobs as these in such a small area."

'Economic climate'

Stadco's customers include Jaguar, BMW, Aston Martin, Land Rover and Ford.

Montgomeryshire AM Mick Bates said it was "absolutely devastating news".

"I'll be meeting management and unions to discuss this," he added.

Montgomeryshire MP Lembit Opik will also meet Stadco's management.

Glyn Davies, prospective parliamentary candidate for the Conservatives in Montgomeryshire, has written to Economy and Transport Minister Ieaun Wyn Jones.

"I've asked Mr Jones to visit the factory to try and retain Stadco's plant in Llanfyllin so when the economic climate improves the firm will be in a position to grow," Mr Davies said.

Llanfyllin is a small market town about 15 miles (24km) north of Welshpool. It has a population of 1,400 people.