A car parts plant which has announced it is likely to close with the loss of 207 jobs was granted more than £100,000 in coronavirus support by the Welsh Government just months ago.
On Wednesday, April 28, Toyoda Gosei UK revealed that it proposed to shut its manufacturing bases in Gorseinon and Rotherham with the loss of over 400 jobs across both sites. The Japanese-headquartered company, which produces specialist automotive parts and LEDs for a number of big automotive brands, said the decision was made "in response to continued changes in the global automotive sector, and a significant reduction in key UK customer demand".
Over 200 jobs at the Swansea plant are likely to be lost when the business, which has been operating in Swansea since 2011, closes.
In December, 2020, it was reported that Toyoda Gosei, one of Swansea 's biggest private-sector employers, was granted £116,000 from the Welsh Government 's £500m Economic Resilience Fund (ERF).
The intention of ERF grants was for the funds to be used to "support businesses and organisations with immediate cash flow support to help them through the economic consequences of the COVID-19 outbreak," according to the government's website.
At the time, a spokeswoman for Toyoda Gosei UK said: "The funding Toyoda Gosei Wales received as part of the Economic Resilience Fund allowed us to protect our workforce through the coronavirus pandemic".
However, four months later the business intends to fold its UK arm and move operations to a central hub in the Czech Republic. It is not clear what proportion of the grant, if any, the business will be required to repay but the company has said it is looking into it.
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A spokeswoman for Toyoda Gosei UK said: "We really appreciate the support provided by the Welsh Government and understand the proposal announcement may have implications for the grant received. We are in contact with the Welsh Government and are committed to working closely with them to review this."
A Welsh Government spokesman confirmed that if ERF funds were not used for the purposes stated on the ERF application form, or if an applicant did not comply with the terms and conditions of funding, then repayment of a grant in full or in part might be necessary.
