Another blow to UK Jobs - Hungary benefits while Wales suffers.
Plant is 20 years old and is deemed uncompetitive in the market.
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.. deemed uncompetitive in the market. >>
As the BBC news story reports:
"Plant director Adam Willmott said move was one of "pure economics" after a feasibility study had concluded the switch to Hungary, where labour costs were 65% .... ".
And that is not the full story, because by the time you add in other higher costs of doing business in the UK (high employer NI rates, sickness and maternity pay, council tax, water and energy charges, jobsworth elf&safety, etc.) it is no wonder that manufacturing industry continues to decline.
The same reasoning probably applied in the decision to close the Air Products factory two/three weeks ago:
" .... The last of 200 staff will leave the Air Products factory, near Wrexham, when it closes for the final time. The firm, which has been at Acrefair for 50 years, is moving production of gas plant equipment to China. .... "
Edited by jbif on 15/01/2010 at 14:37
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Bosch have lost out badly to Valeo in the alternator market. Even their stalwart customers, M-B, BMW and VAG have been fitting an increasing percentage of non-Bosch equipment in order to save costs. Customers with the Teves ABS unit of recent manufacture will know all about this to their cost.
The Valeo machines are fine and will often last the life of a vehicle. I suspect though, that Valeo have trounced Bosch with their "STARS" system which is an integrated alternator/starter.
This enables a vehicle maker to delete the conventional starter (dead weight for 99.9% of running time) and to offer engine "cut out" following idle. The engine can be re-started "on the fly" (ie whilst still turning) and a vehicle maker can claim a usable CO2 reduction for urban running with virtually no re-tooling other than a beefed up Poly Vee drive to the machine.
I have always admired Bosch for their consistent high quality engineering (I will only buy diesel fuel systems from Bosch) but I wonder if this development has caught Bosch out, technically.
I hope the Valeo STARS system is reliable - there's no going back if no starter motor is fitted...
659.
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Bosch is best!
However, and i do not blame them, they will either move production or make up production from other plants outside Europe. Or, they, like many others are awaiting the tax payers to prop up the profits.
in my judgment the plant will not close down but will be trimmed and made even more efficient.
Edited by Honestjohn on 17/01/2010 at 18:08
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Nope its going to close. I think unions tried for a reduced workforce but they drew a blank. I think the news story said 2011.
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I also forgot to say how sorry i feel for all the Bosch employees at the plant who will lose their jobs.
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