Automotive supplier Schaeffler to close Llanelli site due to 'uncertainty of Brexit'
Automotive business Schaeffler has announced it is to close its Llanelli site with the loss of 220 jobs due to uncertainty surrounding Brexit.
The global firm, which employs more than 92,000 people worldwide, said it is "reorganising its UK business activities... to reduce its overall footprint".
Currently 15% of the goods Schaeffler produces in the UK remain in the country, while the vast majority is exported to continental Europe.
The company said the plans will take up to two years to implement.
The Llanelli site, which has been there for 63 years and makes engine parts, and a site in Plymouth, will close and production will be relocated to the US, China, South Korea and Germany.
Mr Ziegler added Brexit was not the "single decisive factor" behind the plans but the "need to plan for various complex scenarios" brought forward the timing.
Schaeffler currently has three plants in the UK, in Plymouth (Barden Corporation Ltd.), Llanelli and Sheffield, and two logistics centres, in Hereford and Sutton Coldfield with a total workforce of more than 1,000 people.
The company said its biggest site in Sheffield which assembles clutches for passenger cars and tractors will be retained in its current form.
The two logistics centres in Sutton Coldfield and Hereford will be combined.
The company said it is now entering into consultations with representatives for all employees at the locations affected. The Managing Director said they will have "transparent and fair discussions with the employees".
Responding to the announcement, Plaid Cymru AM for Mid and West Wales Helen Mary Jones said communities and industries are 'paying the price' for the uncertainty of Brexit.
Similarly, both Nia Griffith MP and Lee Waters AM have urged Ministers in the UK and Welsh Governments to take action to persuade Shaeffler to retain its plant.
Nia Griffith, the MP for Llanelli, said she was 'extremely concerned' while Lee Waters, the AM for Llanelli, said the news was 'troubling'.
First Minister of Wales, Carwyn Jones called on the UK Government to deliver a 'deal that protects Welsh jobs and the economy':
Local businesses across Llanelli say the plant's closure will have a knock on affect across the whole community.
The Lewis Arms Pub says the staff at the site are regular customers, and the news that more than 220 jobs are at risk means they'll lose out on customers:
Analysis by Brexit Correspondent Carole Green:
The closure is distressing news first and foremost for the 220 families directly affected.
If we look at the factors behind the decision, German owned Schaeffler makes engine bearings at its Welsh site but crucially only 15% of what is made stays in the UK. The vast majority of their products are exported to mainland Europe. The company's chief executive said today Brexit was not the single decisive factor behind the closure decision but the need to plan for various complex scenarios has brought forward the timing.
Schaeffler is a global player employing 92,000 around the world and it has been looking at the competitiveness of every site- it has choice where it operates.
Schaeffler has been a key player in the automotive sector supply chain in Wales. It's an important employer in Wales but the sector is very exposed to a No Deal Brexit and any tariffs for parts crossing borders.
Even if Theresa May does strike a deal with Brussels, it's too late for this Llanelli site.
Businesses want clarity and certainty from the UK government and it has been in short supply.
Some may argue companies like Schaeffler pulling out, and Ford Bridgend announcing a temporary production shutdown last week, Jaguar Landrover too, are using Brexit as an excuse.
However there's no doubt the car industry here is under pressure - hit by declining sales, lack of consumer confidence, and some companies slow to adopt new electric technologies.All these challenges are against the backdrop of Brexit and the unknown- for Schaeffler it was enough to pull out.