Peugeot set to close Ryton plant early
PSA/Peugeot-Citroen announced today that the Ryton plant will close in January 2007 rather than in July as previously stated.
In April, the automaker announced plans to close the plant in stages, the first of which began in August this year. In all 2,300 workers will effecively be made redundant.
Peugeot issued a statement saying the closure had been accelerated due to "an increasing number of requests to leave from employees wishing to start new jobs". It also said the number of these requests was growing.
Unions have fervently criticized the automaker's decision to close the plant while it opens a state of the art facility in Slovakia, where labor and running costs are cheaper. The Transport and General Workers Union (T&G) have said they would maintain a campaign urging customers to boycott Peugeot and Citroen vehicles.
Peugeot has consistently maintained that higher raw material costs are to blame and denied that benefits from cheaper manufacturing costs in eastern Europe are the reason for the closure.
In April, the automaker announced plans to close the plant in stages, the first of which began in August this year. In all 2,300 workers will effecively be made redundant.
Peugeot issued a statement saying the closure had been accelerated due to "an increasing number of requests to leave from employees wishing to start new jobs". It also said the number of these requests was growing.
Unions have fervently criticized the automaker's decision to close the plant while it opens a state of the art facility in Slovakia, where labor and running costs are cheaper. The Transport and General Workers Union (T&G) have said they would maintain a campaign urging customers to boycott Peugeot and Citroen vehicles.
Peugeot has consistently maintained that higher raw material costs are to blame and denied that benefits from cheaper manufacturing costs in eastern Europe are the reason for the closure.
posted by Eric at 10:32 PM
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