Llanelli-based Calsonic Kansei is axing nearly a quarter of its 400 staff, citing a slowdown in orders for its radiators and intercoolers from car makers.
The company has been in Llanelli since 1943 and currently employs about 400 people and was given a £4.4M grant by Welsh Government in December to create 88 new jobs. It is unclear if this money will now be given as it was intended to boost work for future electric vehicle parts but so far none of it has been drawn-down by the company.
£4.4 M Welsh Government grant for Calsonic Kansei |
In a statement, the company said, “The added pressures of market instability caused by the political and economic conditions have affected our customers’ volumes and, consequently, Calsonic Kansei’s sales have seen a significant drop. The company intends to do everything reasonably possible to reduce the impact of this proposal on its employees.”
The Unite union blamed the cuts on the UK government’s “failure to have a manufacturing strategy”.
“We are seeing the automotive industry closing factories, we are seeing the automotive industry moving their work abroad, which is then having an impact on the supply chain in the UK,” said Paul Evans.
The jobs loss is a blow to the area after nearby Shaeffler confirmed in January it is closing its factory with the loss of 220 jobs and transferring work to other UK and foreign sites it owns.
Schaeffler closure confirmed |