100 jobs at risk at Wednesbury manufacturing business
Around 100 jobs are at risk at a Wednesbury manufacturing plant where a consultation with staff has got underway as it battles “market challenges, declining volumes, high labour and energy costs”.
Adient in Wednesbury, which produces foam products for customers in the automotive industry, said management and local teams have made “every effort” to mitigate the challenges but structural and market pressures have proven “beyond the scope of feasible solutions”.
The company, an international supplier of automotive seating systems, said the global automotive sector has been undergoing a profound transformation, driven by shifts in technology, market dynamics and geopolitical tension with original manufacturing companies facing increasing challenges.
Uncertainty around the pace of transition to e-mobility, a weakening of consumer demand and intensifying competition from new market entrants - particularly from China - have been blamed for the difficulties.
The firm said European, Middle Eastern and African market and production volumes have contracted by around 25 per cent since 2019, with no return to pre-Covid levels anticipated and that Adient has been experiencing a sustained sales decline.
Against this backdrop, it said all Adient manufacturing plants have been coming “under increasing pressure and Wednesbury is no exception”
The company said in a statement: “Market challenges, declining volumes, the recent loss of a key customer program, and high labour and energy costs in the UK have made it increasingly difficult for the plant to operate profitably.”
As a result Adient said it had informed trade union Unite that it was starting a formal consultation process regarding the future of the Wednesbury site in Hallens Drive.
A spokesperson for the company said: “We recognise this situation may be unsettling for employees and the plant leadership team. We remain committed to maintaining open and transparent communication with all employees and involved parties throughout this process.”
It said no final decisions have yet been made and further details will be shared once the consultation has concluded.
Adient operates around 200 sites globally across 29 countries and the business employs more than 65,000 people.
