The firm is shutting the site at Hilton Cross Business Park, near Featherstone.
It has been at the business park since 1996 when 150 jobs were created with a £13 million investment in the 11-acre site to produce air filters for the European motor industry.
With the closing of this production base, all manufacturing will be relocated within Europe.
The manufacturing operations are expected to be fully closed by the end of 2022.
“Over the past months, several opportunities have been presented and evaluated to improve the plant’s competitiveness. Unfortunately, we concluded that savings or other measures could not offset the dramatic decline in volume. We know that the decision to close the plant will be more than difficult for our employees, and we are committed to work in close cooperation with our negotiation partners,” said Marco Heck, senior vice president for operations Europe automotive systems.
The company said the decision to close the Staffordshire plant results from a difficult market environment, declining manufacturing volume, and the entire automotive industry undergoing a structural transition throughout Europe.
Mann+Hummel, which has its headquarters in Ludwigsburg, dates from 1938. It has grown to have more than 20,000 employees worldwide working at more than 80 locations.
It opened a 5,500 sq metres distribution site at nearby Vernon Park next to the M54 in 2012. This will continue to operate .
The group originally chose to come to Hilton Cross after considering four other locations in Britain.