250 jobs to go at car audio plant

Consultation now starts on the job losses

A company which makes audio speakers for cars is to shut its factory at Port Talbot with the loss of 250 jobs.

Staff at the Panasonic Electronic Devices were told on Friday that increasing competition and price pressure had led to significant losses.

Unions said the news came as a "bolt from the blue".

Panasonic said it planned to close the plant by the end of the year, but said it was too early to say if some staff could be transferred to other sites.

Managing director Yoshimitsu Hioki blamed "significant trading losses resulting from increasing competition and growing pressure on prices".

He added: "We will consult thoroughly with our employees and unions on this issue and very much regret the concern that will be caused to them by this proposal."

Work is expected to move abroad, possibly to Asia or eastern Europe.

The company has in the last two financial years had losses of over £2m and our plans..show no reversal of this trend Plant manager Jerry Lewis

The company has now begun a 90-day consultation period with employees and the unions.

Cath Speight, regional secretary with Amicus, said the plant had made huge strides in efficiency, productivity and quality over the past 18 months.

She said that they were "very disappointed" and would work with the company to try to reverse the decision and save as many jobs a possible.

The plant makes audio speakers for car-makers

Plant general manager Jerry Lewis said: "The proposal was made today to the whole workforce that would result in the closure of Panasonic in Port Talbot, with the potential loss of 250 jobs in December 2006.

"The company has in the last two financial years had losses of over £2m and our plans going forward to 2010 show no reversal of this trend".

He said after the consultation, any avenue would be explored, as would help to employees in relocating to other companies.

"It's a sad day but following the consultation, all avenues will be investigated".

The £13m factory at Baglan Moors, to serve the European market, opened in 1998.

Panasonic relocated from a smaller site, where it had been based for 10 years.

There were hopes at the time that the workforce would double.