Car parts firm sheds 600 jobs

The firm makes parts for companies including General Motors

A car components company is to close with the loss of more than 600 jobs.

Hydro Aluminium Motorcasts, which has been based in Leeds for more than 60 years, said it can no longer continue in the face of cheap foreign competition.

The company began consulting the 612 staff at its Clarence Road site about redundancies on Thursday.

If the proposals are accepted all employees, including local directors, will be made redundant with half leaving by next summer and the remainder leaving by spring 2005.

The firm has recorded losses every year since 1997 and has failed to win a new order for five years.

We simply cannot compete against cheaper competitors based abroad Steve Watson, operations director

Operations director Steve Watson said: "It is extremely saddening to have to deliver news of this nature to employees.

"Our workforce has demonstrated unswerving loyalty over many years and has done its best to help the company try to meet the challenge of competing against cheaper foreign-made products.

"The simple truth is that there is global over-capacity in the automotive components industry and we simply cannot compete against cheaper competitors based abroad.

"We have not won any new orders for five years or reported a profit since 1997."

Union fight

The Amicus union reacted angrily to the news and claimed "weak employment laws" had made it easy for the company to close the plant.

Regional officer Dick Croft said: "We will be fighting this closure by any means that is available to us.

"We will be putting our case to the company and at the same time lobbying the government during the Amicus demonstration at Labour Party conference on 29 September."

Hydro Aluminium Motorcasts produces cast aluminium engine blocks and cylinder heads for a number of car makers including General Motors and Ford.