Japanese manufacturer NSK plans to close two County Durham factories, jeopardising around 350 jobs.
The Tokyo-based automotive parts supplier cited “persistent challenges in the profitability of locally manufactured products” for the proposed closures.
A consultation has begun with union representatives over proposals to cease production at the Peterlee sites.
These facilities, operating via European subsidiaries NSK Bearings Europe and AKS Precision Call Europe, produce vehicle bearings.
These components are understood to be supplied to carmakers including Volkswagen and Renault.
If the proposals proceed, the factories are expected to close by March 2027.
NSK said it will “implement all necessary measures to support all circa 350 employees who may be affected”.
The plans form part of ongoing restructuring across European operations, according to the business.
It said it was taking action such as withdrawing from unprofitable businesses and reorganising production sites.
Trade union Unite said it was a “betrayal” by NSK of its workforce in the region.
General secretary Sharon Graham said: “This is a complete betrayal by NSK of its County Durham workforce, who have broken their backs hitting performance targets that they were told would keep their factories safe.
“There is a viable business case for keeping these sites open and Unite will fight tooth and nail for that to happen.”
The trade union said automotive parts suppliers were being affected by the shift away from traditional engines and toward electric vehicles.
But its national officer Steve Bush stressed that “bearings will still be needed for cars long after diesel and petrol engines have been phased out”.
“NSK doesn’t need to close these factories and Unite will be forcefully making that point during consultations,” he said.
