Page last updated at 15:58 GMT, Tuesday, 9 December 2008

110 jobs to go as car plant shuts

BorgWarner plant in Margam
BorgWarner have been based at Margam since the 1960s

A car parts factory near Port Talbot will shut within 18 months with the loss of all 110 staff.

BorgWarner blamed the decision to close its factory at Margam on the global economic downturn.

It has been based there since the 1960s and said the decision to close had not been an easy one.

It said the plant would shut by mid 2010 and during the coming months it would focus on assisting those who will lose their jobs.

In a statement the company said: "The Margam plant has a long and rich history with BorgWarner so the decision has not been an easy one.

"It has only been made after other options have been considered.

"The continuing decline in the global economic conditions and the overall automotive market has significantly affected this decision.

"The transition period will focus on assisting Margam employees in their individual situations and in assuring uninterrupted service to our customers. The plant employs about 110 people."

Some workers at the plant have faced the prospect of redundancy before as it was earmarked to close in 2001.

But 200 jobs were saved at the time when the factory, which manufactures transfer cases and synchro systems, won a major new contract from Korean car company Kia.

Chris Holmes, the Amicus representative at BorgWarner, said they had hoped that two rounds of redundancies this year had secured the factory's future.

He added the company had been talking about moving work to Margam from Holland - but the continuing slump in the motor industry has changed its mind.

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