North-south row as 200 jobs axed

The company said moving elsewhere in Europe was a real possibility

A row has flared over a US-owned firm's decision to close a 200-job north Wales factory and move it to the south.

Meritor will relocate its trailer axle plant from Wrexham to Cwmbran after receiving an assembly government grant.

Opposition AMs Janet Ryder and John Marek are both critical. Plaid Cymru's Ms Ryder claimed competition was being created between north and south Wales.

But the assembly government said that was "absurd," and the choice was between Wales and the rest of Europe.

Combining facilities to strengthen our global manufacturing base is in line with our corporate strategy Chip McClure, ArvinMeritor

Staff at Meritor, on the Llay industrial estate, were told in July that their jobs were threatened, and the parent company, ArvinMeritor, has confirmed that the work will be transferred to its sister plant in the south Wales valleys.

In a statement, the company said a regional assistance grant from the assembly government-run Welsh Development Agency (WDA) kept the work in Wales.

ArvinMeritor said moving to another part of Europe, including Slovakia and France, had been a "distinct possibility".

The factory makes axle and suspension systems for HGV trailers

"Combining facilities to strengthen our global manufacturing base is in line with our corporate strategy," said Chip McClure, chairman, chief executive, and president of ArvinMeritor.

"These actions support our efforts to be more efficient, avoid creating excess capacity and improve our financial performance," he said.

Ms Ryder, who represents north Wales, said: "It is essential that the Labour Assembly Government unite north and south, instead of creating competition amongst different areas in Wales."

She claimed Labour "allows impoverished areas to fight amongst themselves for much-needed jobs."

Dr Marek, the former Labour MP and AM who now represents Forward Wales, said he was "astounded" that public money was being given to the company, and believed the company could have been kept in the north.

ArvinMeritor had already decided to close the Wrexham facility when plant managers from Cwmbran approached the Welsh Assembly Government for assistance Assembly government

"If anyone needs final proof that the Labour administration is there for its own purposes in south Wales then this is it," said Dr Marek.

He claimed efforts led by the union Amicus to save Wrexham jobs were being undermined.

An assembly government spokesperson said: "This is an absurd claim that competition is being created between different parts of Wales.

"For these jobs, the choice was not between north and south Wales but between Wales and other parts of Europe.

"The parent company, ArvinMeritor Inc, had already decided to close the Wrexham facility when plant managers from Cwmbran approached the Welsh Assembly Government for assistance in retaining the jobs in the UK.

"The Welsh Assembly Government is concerned about the futures of the staff made redundant in Wrexham and will be working with other agencies to assist them in finding new employment or training opportunities."