Rationalisation of an Indian-owned business is to affect 137 auto-related jobs in the British West Midlands though some workers may be able to transfer to remaining company factories.

Mahindra Forgings’ Stokes Group, which supplies forged and machined components to the automotive industry from three sites, will rationalise the business down to two, the parent company said in a statement.

“The company has been operating in a challenging environment for some considerable time and the recent collapse in European car sales has negatively impacted the current prospects and without restructuring, could affect the future viability of the business,” it said.

“The business must now be restructured in line with current and future demand to ensure an ongoing viable operation.

“As a result, it has been decided to close the manufacturing site in Walsall, West Midlands, and concentrate the forging and machining operations at the other two sites in Dudley and Brierley Hill.”

The Walsall plant will close at the end of April 2009, with the loss of 137 jobs but customers and products serviced from Walsall will be now be supplied from the other two facilities, creating 52 additional jobs there.

“All Walsall employees will be given the opportunity to apply for these vacancies,” the company said.