Car parts firm GKN announces job cuts and plant closures.

Engineering firm GKN has announced plans to close down three plants in the UK and cut at least 550 jobs as part of a restructuring package.

GKN will close plants in Hamstead, Walsall and Telford over the next two years and consolidate all its UK driveline operations into the one plant in Erdington, Birmingham.

The company hopes the move will enable long-term sustainability as well as ensuring a competitive supply of car parts to customers.

The forge facility at Hamstead will be the first to close at the end of 2009, followed by the car parts facility at Walsall in the middle of 2010. The closures will result in 323 job losses.

A further 150 jobs will be lost at the company’s Telford auto structures plant. GKN blames a “dramatic and sustained reduction in customer orders” for the cuts.

GKN Automotive Chief Executive, Nigel Stein, said: “The actions being announced today (17 February) are regrettable but absolutely necessary to respond to the global economic downturn that is particularly affecting the automotive industry.

“We are in unprecedented times and we must protect our position as a leading global automotive supplier and ensure we are in a strong position to meet our customers’ needs now and when the markets recover.”

Downsizing will also occur in the company’s Aerospace division as closures in Luton and Burnley will result in 91 job losses.

These measures have been undertaken by GKN as part of the £120 million restructuring costs announced on 28 January 2009.