KIYOSU, Japan—Toyoda Gosei has started a formal period of consultation with its employees in the United Kingdom regarding a proposed plan to close its operations in the country.
The move is in response to continued changes in the global automotive sector, and a significant reduction in key U.K. customer demand, the automotive components manufacturer said in an April 28 statement.
Toyoda Gosei, which supplies parts to Nissan, Renault and Honda, said it does not foresee growth of its business in the U.K. due to those changes.
Headquartered in Rotherham, England, Toyoda Gosei U.K. Ltd (TGUK) has two production facilities in Rotherham and Swansea, Wales, and employs 458 people.
Owned 91.09 percent by Toyoda Gosei and 8.91 percent by Toyota Tsusho Corp. the company manufactures weatherstrips in Rotherham and automotive interiors and exteriors in Swansea.
Toyoda Gosei said the decision to close the U.K. business was part of a reorganization plan within its European operations to achieve sustainable growth into the future.
In December 2019, Toyoda Gosei sold its German weatherstrips production subsidiary Toyoda Gosei Meteor (TGM) to AEQPH GmbH and transferred parts of production to its main European manufacturing site, Toyoda Gosei Czech, SRO (TGCZ).
In its latest statement, the Japanese group said it will continue to improve productivity and strengthen TGCZ to play a central role within its European operations.
