Page last updated at 10:52 GMT, Tuesday, 8 July 2008 11:52 UK

New car plant owner 'will invest'

Former Visteon plant in Swansea
Around 300 jobs were cut or transferred by Visteon in recent years

The new owner of a troubled car plant in Swansea employing around 400 staff has pledged a "substantial investment" to modernise the site.

The Canadian-based Linamar Corporation has concluded a deal to buy the Visteon factory, off the city's Fabian Way.

There was uncertainty over its future as the workforce has been cut by around 300 in recent years.

Linamar said it intended to build the business by introducing new products and updating equipment.

The plant currently makes axles and brake systems for the automotive industry.

Linamar said it planned to introduce new products such as camshafts, fly wheels and connecting rods.

The employees of the historically engine focused facility are the cornerstone of the investment
Linamar Corporation statement

In a statement it said: "Linamar intends to make a substantial investment to modernise the plant and update production equipment to take the business forward.

"The acquisition includes the addition of 400 skilled employees to the Linamar family.

"The employees of the historically engine focused facility are the cornerstone of the investment."

The Swansea plant is Linamar's first in the UK although it operates 38 around the world and four others in Europe.

Visteon said the sale of the plant for a "nominal cash consideration" was "a significant milestone" in its efforts to improve its financial performance.

Deputy first minister Ieuan Wyn Jones said the Welsh Assembly Government had worked closely with Linamar to secure the future of the site.

"Attracting investment from an extremely successful global manufacturing company of the calibre of Linamar is good news for Wales and for the long-term future of the former Visteon Swansea facility," he added.

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