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The Guardian - UK
The Guardian - UK
Business
Hans Kundnani

Peugeot to close Ryton plant sooner than expected

Peugeot-Citroen said today it will close its plant near Coventry six months sooner than expected.

The plant, in Ryton in Warwickshire, where the Peugeot 206 is made, will close in January 2007, with the loss of up to 2,300 jobs.

The company had previously said it would close next summer.

Peugeot-Citroen announced in April that it was moving production of the 206 to Slovakia because of high production and logistical costs at Ryton.

The Transport and General Workers Union reacted angrily to the closure, calling for a boycott of Peugeot. It will hold an emergency tomorrow.

The company said today that it had received so many requests from the remaining staff to leave that it had been forced to bring forward its plans to shut the plant altogether.

"Since moving to one shift in August the company has received an increasing number of requests to leave from employees wishing to start new jobs and the rate of these requests is accelerating," it said in a statement.

"This situation has prompted the group to review the timing of the end of activity at Ryton," it said.

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