NSK plans to shut UK factories - placing hundreds of jobs at risk

A Japanese manufacturing firm is facing a union battle over plans to shut factories in County Durham with the loss of hundreds of jobs.

NSK said it was proposing to close its two sites in Peterlee as part of a strategy to exit unprofitable businesses.

The factories, which produce bearings for the automotive industry, employ up to 400 people.

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NSK said it had begun consultations with union representatives on its plans.

Unite the Union said it would fight the planned closures. It described the announcement as a "betrayal" of the workforce.

The company first began operations at Peterlee in 1976. It has another UK manufacturing facility at Newark in Nottinghamshire and another three in Germany and Poland.

The Peterlee factories produce bearings for steering columns and wheel hubs.

Its customers are understood to include VW, Renault and fellow Japanese firm Nissan, which has sprawling car production facilities just up the coast at nearby Sunderland.

Its statement said NSK Europe had faced "persistent challenges in the profitability of locally manufactured products".

"NSK will continue discussions with stakeholders and provide support measures for affected staff if the closure proceeds, which is expected to be completed no later than March 2027.

"The company has not yet determined the full impact of this decision on its business performance," the statement concluded.

Challenges for UK manufacturers in recent times include Brexit red tape and high energy costs, though the Peterlee operation is understood to have been run on power generated purely from wind.

Unite blamed pressures on automotive parts suppliers from weak demand hitting car manufacturers during the transition away from internal combustion engines to electric vehicles.

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Its 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."

Unite said it was urging the government to intervene with financial support to protect automotive jobs.

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