FRANCE: Valeo cuts 560 jobs in Spain and Portugal
French car-parts maker Valeo SA late on Thursday said it is planning to cut about 560 jobs as part of a restructuring of its Abrera, Spain and Santo Tirso, Portugal sites, Dow Jones reported.
The plan for the two sites, which are part of Valeo's electrical and connective systems unit, is to be presented to Valeo's European workers' council June 25, the news agency added.
"The Abrera site isn't competitive in current market conditions, which have seen other suppliers relocate production in lower-cost countries," Valeo told Dow Jones.
As a result, the news agency said, Abrera's production of modular electrical wiring harnesses should be transferred to other Valeo production sites in Morocco, Tunisia and Portugal while the research and development, sales, quality and supply-chain activities would remain in Abrera.
These restructuring measures imply cutting 406 jobs out of a total of 450 in Abrera, Valeo reportedly said.
The company is planning to cut 153 jobs out of 494 in Santo Tirso, as Valeo aims to focus production on modular electric wiring harnesses for car bodies and engines, Dow Jones added.