Workers at an automotive plant have been told that its German owners plan to close the facility, putting 110 jobs at risk.
German firm ZF has told staff at its plant on the Rainton Bridge Industrial Estate in Sunderland at the end of 2021.
The plant makes motors for steering columns and employs around 110 staff.
But the company said volumes have fallen significantly in recent years and the site has struggled to gain new business. It added that the relatively high costs for motor production at the Wearside plant are also hampering its ability to remain competitive.
The company said: “The automotive industry has been subjected to a number of market challenges over the last two or three years which have been severely compounded by the corona pandemic, with recovery expected to take several years.
“The closure of the Sunderland manufacturing facility is a necessary step in order for ZF to adapt capacities, competitiveness and footprint in line with future business requirements.
“ZF will begin the collective consultation process well ahead of the proposed plant closure date to give employees the opportunity to prepare for the future. The company is committed to supporting its employees in finding new employment during this difficult period.”
The ZF Group has more than 250 locations in 41 countries, including 10 around the UK.
Its plant at Houghton-le-Spring dates back to 1989 and was extended five years ago with the help of a £1.75m grant from the Regional Growth Fund.
Most of the plant’s products went into export markets, particularly in Europe and China, but the automotive sector has been hard hit in recent years by changing customer behaviour, falling demand and this year by the coronavirus pandemic.
A number of major automotive companies, including Nissan and Jaguar Land Rover, have had to cut staffing levels this year.
