More jobs to go at Telford's GKN as firm loses contracts
Ten staff will be made redundant at an engineering company, as the firm suffers from the loss of further contracts.
GKN in Telford has already made more than 200 people redundant at the Hadley Park site this year, and is now looking for further volunteers to take up the latest slots.
It comes as staff received a letter reassuring them about the future of the company's operation in the county after a sister company was sold and more redundancies were announced.
GKN spokesman Chris Fox said: "It reflects an unfortunate adjustment we need to make to cope with fewer orders.
"It is not part of a wider process and we have asked for volunteers."
MORE: Sales improve for GKN group
Earlier in the year, GKN announced plans to cut 230 staff at the site because of the loss of the contract to build chassis for the Land Rover T5 at the end of August.
That was followed by another 21 jobs disappearing from Telford because its hybrid power operation was being transferred to another company site in Birmingham.
The latest redundancies leave about 340 people employed at the Hadley site, which has been used for making wheels for more than 100 years.
Now bosses have attempted to quell concerns over the future of the Land Systems side of the business, which includes the Hadley Park operation, by writing to workers to assure them that they intend to continue investing in the business.
It follows the sale of part of the Land Systems operation in Germany last week, and a string of results which have shown declining sales in the Land Systems operation because of difficulties in agricultural and construction markets.
The FTSE 100 company is today updating investors on its operations so far this year.
Hadley Park was first used for wheel manufacturing in 1908, and the site became part of the GKN Group in 1920.
It was absorbed into the company's Land Systems operation, which also makes chassis, gearboxes and drive shafts among various car components, in 2010.
Core focus
The company has committed to continuing to invest in its wheels and structures operation, which includes the historic site at Hadley Park.
On Friday, the company sold its Stromag division in Germany to Altra Industrial Motion for 184 million euros (£163.8 million), and in a statement said the deal would allow it to focus its attention on the "core" aerospace and automotive businesses.
The Land Systems division has begun to drag on the company in recent times, with sales falling amid a slowdown in agricultural markets, and some investors had started speculating as to its future role within the Midlands-headquartered business.
At the same time, redundancies have mounted at the Telford site.
In March it was announced that 230 jobs were to go after the contract to make chassis for the Land Rover T5 was lost, and it was revealed in July that the headcount at the site would fall by 21 after GKN moved its hybrid power operation into its Driveline site in Birmingham.
The latest job losses mean that around 340 people will be left working on the Telford-based operation.
No change for most
Now bosses at GKN have attempted to mollify staff in its Land Systems division around the world with a letter which suggests that the Land Systems operation still has a key role to play in the company's future.
In it, Land Systems chief executive and group finance director Adam Walker said: "The decision to sell Stromag was to create value for our shareholders and generate funds to invest in other areas of the GKN Group. Both Wheels and Structures and Shafts and Services will receive ongoing investment in 2017."
The letter added: "Change brings uncertainty but for the vast majority of you there is no change.
"We continue to build a better business, support our customers, operate in a safe working environment and look after our people, just as we did yesterday."
Last year, group sales increased by three per cent to £7.7 billion, while profits clocked in at £603 million.
But sales in Land Systems fell by six per cent during the same period, because of "challenging agricultural and construction equipment markets".
The company was due to publish a trading update today, which was likely to show another uplift in sales for the engineering group, which employs 55,000 people in four divisions around the world.
Hadley Park was first used for wheel manufacturing when Wingfield Burton created the first pressed and welded detachable wheel at the site in 1908, and subsequently patented the invention.
Industrial organisation Joseph Sankey became part of the GKN Group in 1920. GKN Wheels became part of GKN Land Systems in 2010.
