Ford has released a statement setting out its reasons for closing its Bridgend engine plant in September 2020.
The company has confirmed reports that it will completely close its south Wales engine plant, which makes petrol engines for Ford and Jaguar Land Rover vehicles, as part of a "global redesign" of the business.
The company has said the plant will be "economically unsustainable in the years ahead" due to lack of demand for the the engine models the factory makes.
Union leaders were called to an emergency meeting this morning in Essex, where they were told that consultation on the company's plans will now begin.
Staff in Bridgend were then called to a mass meeting inside the facility around 11.30am.
President of Ford of Europe Stuart Rowley said: "We are committed to the UK, however, changing customer demand and cost disadvantages plus an absence of additional engine models for Bridgend going forward make the plant economically unsustainable in the years ahead.
“Creating a strong and sustainable Ford business in Europe requires us to make some difficult decisions, including the need to scale our global engine manufacturing footprint to best serve our future vehicle portfolio,” he said.
Production of the Dragon engine will finish in February 2020, with manufacture of the engines supplied to Jaguar Land Rover ceasing in September 2020, when the plant will be closed.
Ford says the closure of the plant will cost it $650million - around £508 million.
Mr Rowley said: “As a major employer in the UK for more than a century, we know that closing Bridgend would be difficult for many of our employees.
"We recognise the effects it would have on their families and the communities where they live and, as a responsible employer, we are proposing a plan that would help to ease the impact."
What are the reasons for the closure?
- Changing customer demand
- Engines made at Bridgend are more expensive than the same models made elsewhere
- 'Significant underutilisation' of the plant because of production of engines for Jaguar Land Rover will soon end, the stopping of the previous generation Ford GTDi 1.5-litre engine, and reduced global demand for the new generation Ford GTDi and Pfi 1.5-litre engine
Engine production will remain at Dagenham, which makes diesel engines, and the Dunton Technical Centre in Essex.
What about the staff?
Ford has said that staff will be offered packages, including the option of redeployment to other UK Ford sites.
The company says it will also support them to find new employers or pursue new opportunities, such as creating their own businesses or training for new careers.
The Welsh Government has already said it will deploy assistance to help families and staff affected.
Unions have already vowed to fight the closure, saying the company has a moral obligation to remain in the town.
Unite Wales regional secretary Peter Hughes said: “Today’s announcement by Ford is a very dark day for Wales. Our longstanding prediction that Ford had a long term plan to exit from Bridgend has finally today been exposed.
"The stark reality of a plant closure and the devastation that it would bring is now staring us all directly in the face.
"Ford Bridgend is absolutely central to the future success of the Welsh economy. Its closure would have an enormous impact on the wider Welsh automotive supply chain leading to thousands of additional job losses outside of Ford."
