Japanese automotive parts supplier NSK is proposing to shut two of its County Durham plants in northeast England, putting about 350 roles at risk.
The European manufacturing subsidiaries of NSK, NSK Bearings Europe and AKS Precision Ball Europe, have begun formal collective consultation to withdraw production from the sites.
If the closures of the sites proceed, they would take place no later than March 2027, according to the company, as it restructures its European operations.
In its statement, NSK said it is “advancing structural reforms in its European operations. Due to persistent challenges in the profitability of locally manufactured products, NSK has been implementing measures such as withdrawing from unprofitable businesses and reorganising the production sites.
“The proposed withdrawal production from the Peterlee site is part of these ongoing structural reforms. Going forward, NSK will engage in careful consultations with all relevant stakeholders regarding the potential withdrawal.”
Workers’ union Unite has urged NSK to scrap its plan to shut the sites, which produce automotive bearings.
The union said the Peterlee plants supply Volkswagen and Renault, with most of its output - components used in both internal combustion and electric vehicles - exported to mainland Europe.
It argued that while parts makers are being hit by low production volumes as carmakers transition to electric models, bearings will remain essential regardless of powertrain.
Unite also called for government support to protect automotive jobs until demand recovers.
Unite general secretary Sharon Graham said: “This is a complete betrayal by NSK of its County Durham workforce, who have broken their backs hitting performance targets that they were told would keep their factories safe. There is a viable business case for keeping these sites open and Unite will fight tooth and nail for that to happen.”
NSK did not provide a quantitative forecast of the impact on its business performance.
NSK said: “We will conduct a thorough assessment and communicate the results promptly once the extent of the impact has been clarified.”
