Delphi plans to shut its Czech unit, laying off all 1,400 employees at its plant at Ceska Lipa, 90 km north of Prague, a trade union leader has said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The job cuts at the wiring harness plant, whose clients included BMW and Audi are planned in several stages, with the shutdown to be completed by the end of May 2011.
“The reason is moving to cheaper locations,” Ladislav Belohlav, union leader at the factory told Reuters.
The Czech Republic is home to many foreign investors who control a majority of local industrial production centred on cars, electronics and steel, the report noted. Rising living standards and costs have led to the movement of some lower value-added production to cheaper countries further east.
