Toyota's �88m investment on hold

Last year Deeside celebrated the production of three million engines

An �88m investment at car maker Toyota's Flintshire factory has been put on hold because of the economic downturn.

Production of a new petrol engine for the company's Auris model was due to begin on Deeside in 2009, but work on developing a new production line has been suspended pending a review.

The investment had been expected to safeguard the plant's 600 staff.

The move follows the suspension of night shifts at a Derbyshire factory.

Workers at Toyota's Burnaston plant, where the Auris hatchbacks are assembled, were told in September that the night shift was being halted for five months in response to "market conditions".

Due to the continuing difficult market conditions resulting from the global economic downturn, Toyota Motor Corporation is reviewing all investment decisions

Toyota spokesman

The company said then it wanted to cut production by 15,000 cars and also announced a review of production on Deeside.

On Tuesday, a spokesman for the car giant said no permanent staff at Deeside were affected by the latest news.

However, he added that some temporary workers had been laid off in the past year as part of "planned activity" while a changeover in engine models was being carried out.

The �88m investment for a new production line was announced in March 2007 during a visit to factory by First Minister Rhodri Morgan and Deputy First Minister Ieuan Wyn Jones.

The Deeside plant was to produce the Auris's new 1.3 litre NR engine which is designed to help meet new carbon emissions regulations.

'Difficult'

The Toyota spokesman said the review of investment decisions was likely to take several months.

He added: "Due to the continuing difficult market conditions resulting from the global economic downturn, Toyota Motor Corporation is reviewing all investment decisions.

"This review affects the current NR engine project, which we announced last March, at our engine plant in Deeside. Whilst the review is on going, we will be suspending all NR project activity.

"Employees involved in the NR project will carry out quality improvement activities during this period, allowing us to maintain our commitment to long-term stable employment and superior quality for our customers.

"Our employees understand the importance of maintaining flexibility and we appreciate their continued support and commitment during these challenging times."

A spokesman for the Welsh Assembly Government said: "We are disappointed that Toyota has had to take the decision to suspend work on the new NR engine line at Deeside in response to the downturn in the global automotive sector.

"Whilst we understand that no permanent staff will be affected by this decision, we will continue to work very closely with the company and provide what support we can during this difficult period."