Hundreds of jobs could go at GKN

Hundreds of jobs could be axed by West Midlands-based GKN, which revealed today it was looking to cut staff and shut down plants.

GKN, which employs around 5,000 people across the UK, reckon it is to take what it described as "strong" action to offset an expected plunge in profits as demand continues to weaken.

The group is based in Redditch and has about 2,500 staff in its UK automotive operations, with a major plant in Telford and two other factories in Birmingham.

Many of the workers at the Telford Hadley Castle plant have historically travelled from the Black Country and Staffordshire to work every day, although the number of people employed there has fallen in recent years.

The Telford manufacturing plant makes parts for a number of major vehicle manufacturers, including Land Rover and Ford, which have been hit hard by the current economic downturn.

It is not clear how many of GKN's automotive workforce will be affected, but a spokesman said the group would be looking to take action "across the board."

He added: "We are now finalising plans to reposition our business to deliver acceptable profitability and cash generation through this difficult period."

The firm have revealed that full-year pre-tax profits would also suffer as a result of a downturn in car and van sales, now expected to be around a fifth lower than in 2007.

Shares in GKN plummeted by more than 20 per cent in early trading with the profits warning.

The group, which at its peak had operations across the West Midlands, added sales in the automotive division were now expected to be around 15 per cent lower in the fourth quarter year-on-year.

But it has stated its 2,500 strong UK aerospace division was largely unaffected by the job cuts, adding that the division "remains robust".