GKN factory in Birmingham set to close.
GKN factory in Birmingham set to close.
Author
Discussion

robinessex

Original Poster:

11,657 posts

198 months

Saturday 6th February 2021
quotequote all
GKN factory in Birmingham set to close putting 500 jobs at risk

https://www.bbc.co.uk/news/uk-england-birmingham-5...

A car parts factory is set to close putting up to 519 jobs at risk.

Birmingham Erdington MP Jack Dromey said the announcement by GKN was "completely unexpected" and brought to an end more than 50 years of manufacturing at the Chester Road site.
Unite the union said it was seeking urgent meetings with GKN claiming the factory remains "extremely viable".
GKN said it had tried to reduce the site's operating costs but competition from abroad had made it unviable.
It said the proposed closure had been a "difficult decision" after a "significant effort" had been made over the past 10 years to invest in the GKN Driveline factory.
Labour's Mr Dromey described it as "a world-class producer for the automotive industry and one of the biggest suppliers into car plants across the West Midlands".
GKN WAS BOUGHT BY INVESTMENT FIRM MELROSE INDUSTRIES IN MARCH 2018.

The last sentence says it all really. Investment firm?

Mandat

4,306 posts

255 months

Saturday 6th February 2021
quotequote all
robinessex said:
GKN factory in Birmingham set to close putting 500 jobs at risk

https://www.bbc.co.uk/news/uk-england-birmingham-5...

A car parts factory is set to close putting up to 519 jobs at risk.

Birmingham Erdington MP Jack Dromey said the announcement by GKN was "completely unexpected" and brought to an end more than 50 years of manufacturing at the Chester Road site.
Unite the union said it was seeking urgent meetings with GKN claiming the factory remains "extremely viable".
GKN said it had tried to reduce the site's operating costs but competition from abroad had made it unviable.
It said the proposed closure had been a "difficult decision" after a "significant effort" had been made over the past 10 years to invest in the GKN Driveline factory.
Labour's Mr Dromey described it as "a world-class producer for the automotive industry and one of the biggest suppliers into car plants across the West Midlands".
GKN WAS BOUGHT BY INVESTMENT FIRM MELROSE INDUSTRIES IN MARCH 2018.

The last sentence says it all really. Investment firm?
Do you reckon this is Brexit related?

Countdown

45,076 posts

213 months

Saturday 6th February 2021
quotequote all
robinessex said:
Labour's Mr Dromey described it as "a world-class producer for the automotive industry and one of the biggest suppliers into car plants across the West Midlands".
GKN WAS BOUGHT BY INVESTMENT FIRM MELROSE INDUSTRIES IN MARCH 2018.

The last sentence says it all really. Investment firm?
Melrose paid £8bn for GKN

The article said:
Labour called Melrose a "short-termist asset-stripper" and condemned the deal.

Biggy Stardust

7,068 posts

61 months

Saturday 6th February 2021
quotequote all
Is this the same Unite union that was often a pain in the arse when things are running normally?

Tango13

9,619 posts

193 months

Saturday 6th February 2021
quotequote all
robinessex said:
GKN factory in Birmingham set to close putting 500 jobs at risk

https://www.bbc.co.uk/news/uk-england-birmingham-5...

A car parts factory is set to close putting up to 519 jobs at risk.

Birmingham Erdington MP Jack Dromey said the announcement by GKN was "completely unexpected" and brought to an end more than 50 years of manufacturing at the Chester Road site.
Unite the union said it was seeking urgent meetings with GKN claiming the factory remains "extremely viable".
GKN said it had tried to reduce the site's operating costs but competition from abroad had made it unviable.
It said the proposed closure had been a "difficult decision" after a "significant effort" had been made over the past 10 years to invest in the GKN Driveline factory.
Labour's Mr Dromey described it as "a world-class producer for the automotive industry and one of the biggest suppliers into car plants across the West Midlands".
GKN WAS BOUGHT BY INVESTMENT FIRM MELROSE INDUSTRIES IN MARCH 2018.

The last sentence says it all really. Investment firm?
Investment firm? The cynic in me is thinking asset strippers...

Buy the company for their supply contracts, outsource the manufacture of the components abroard where it's cheaper and sell off everything else for some short term profit before rinsing and repeating with the next victim. Looking at the location on Google maps and it looks like a good site for a few hundred houses too...



Sophisticated Sarah

15,078 posts

186 months

Saturday 6th February 2021
quotequote all
Tango13 said:
Investment firm? The cynic in me is thinking asset strippers...

Buy the company for their supply contracts, outsource the manufacture of the components abroard where it's cheaper and sell off everything else for some short term profit before rinsing and repeating with the next victim. Looking at the location on Google maps and it looks like a good site for a few hundred houses too...
yes

Misanthrope

613 posts

62 months

Saturday 6th February 2021
quotequote all
Tango13 said:
Investment firm? The cynic in me is thinking asset strippers...

Buy the company for their supply contracts, outsource the manufacture of the components abroard where it's cheaper and sell off everything else for some short term profit before rinsing and repeating with the next victim. Looking at the location on Google maps and it looks like a good site for a few hundred houses too...
But what the fk are the people in those new houses going to do when all the jobs have been exported abroad?

Tango13

9,619 posts

193 months

Saturday 6th February 2021
quotequote all
Misanthrope said:
But what the fk are the people in those new houses going to do when all the jobs have been exported abroad?
That is a question neither the asset strippers nor the government have bothered to ask in the past 40 odd years I'm sorry to say.

Manufacturing has become a dirty word in the UK over the years which is a crying shame when you consider the history of engineering in the UK frown

Countdown

45,076 posts

213 months

Saturday 6th February 2021
quotequote all
Tango13 said:
That is a question neither the asset strippers nor the government have bothered to ask in the past 40 odd years I'm sorry to say.

Manufacturing has become a dirty word in the UK over the years which is a crying shame when you consider the history of engineering in the UK frown
It's not that manufacturing has become a dirty word. It's the fact that corporate profit has become the be all and end all for shareholders of British companies and (rightly or wrongly) our laws don't interfere with this.

IIRC the takeover of Danone in France was prevented because French politicians labelled it as a national security asset. Perhaps if we had that sort of attitude we would retain more manufacturing and industries in general in the UK

over_the_hill

3,241 posts

263 months

Saturday 6th February 2021
quotequote all
Sophisticated Sarah said:
Tango13 said:
Investment firm? The cynic in me is thinking asset strippers...

Buy the company for their supply contracts, outsource the manufacture of the components abroard where it's cheaper and sell off everything else for some short term profit before rinsing and repeating with the next victim. Looking at the location on Google maps and it looks like a good site for a few hundred houses too...
yes
This is fairly local to me and if you look on Google maps to the side of the factory site - Gunter Road to Tyburn Road area - the whole area there is relatively new builds. This was formerly industrial land too with factories and units. It featured in London's Burning when they had all shut down and they did an episode with a massive factory fire.

Armchair Expert

3,095 posts

91 months

Tuesday 9th February 2021
quotequote all
Countdown said:
It's not that manufacturing has become a dirty word. It's the fact that corporate profit has become the be all and end all for shareholders of British companies and (rightly or wrongly) our laws don't interfere with this.

IIRC the takeover of Danone in France was prevented because French politicians labelled it as a national security asset. Perhaps if we had that sort of attitude we would retain more manufacturing and industries in general in the UK
If people were not so willing to buy Cheaply made stuff then it would be closing down factories here to make them at a greater profit far far away



voyds9

8,490 posts

300 months

Tuesday 9th February 2021
quotequote all
[redacted]

markcoznottz

7,155 posts

241 months

Tuesday 9th February 2021
quotequote all
[redacted]

Countdown

45,076 posts

213 months

Tuesday 9th February 2021
quotequote all
[redacted]

100SRV

2,274 posts

259 months

Tuesday 9th February 2021
quotequote all
Countdown said:
It's not that manufacturing has become a dirty word. It's the fact that corporate profit has become the be all and end all for shareholders of British companies and (rightly or wrongly) our laws don't interfere with this.

IIRC the takeover of Danone in France was prevented because French politicians labelled it as a national security asset. Perhaps if we had that sort of attitude we would retain more manufacturing and industries in general in the UK
This ^

snotrag

15,215 posts

228 months

Tuesday 9th February 2021
quotequote all
Biggy Stardust said:
Is this the same Unite union that was often a pain in the arse when things are running normally?
Under rated comment.

Having worked in manufacturing for a good few years, including Automotive (and even used to buy a few bits from GKN), I'd be interested to know how often since 2018 Unite have had their members down tools or work to rule because they've changed the Egg Mayo in the cafe, or been told they are not allowed to put Radio 2 on on the shop floor, or heard a rumour that the cleaners are gettng paid too much, or moaned that the office staff clearly dont do any work and they keep telling us what to do when we know better. Etc.


Its a real shame, they've done some interesting stuff GKN.

Countdown

45,076 posts

213 months

Tuesday 9th February 2021
quotequote all
snotrag said:
Biggy Stardust said:
Is this the same Unite union that was often a pain in the arse when things are running normally?
Under rated comment.

Having worked in manufacturing for a good few years, including Automotive (and even used to buy a few bits from GKN), I'd be interested to know how often since 2018 Unite have had their members down tools or work to rule because they've changed the Egg Mayo in the cafe, or been told they are not allowed to put Radio 2 on on the shop floor, or heard a rumour that the cleaners are gettng paid too much, or moaned that the office staff clearly dont do any work and they keep telling us what to do when we know better. Etc.


Its a real shame, they've done some interesting stuff GKN.
Is it the Unions that are forcing them to close?

wc98

12,024 posts

157 months

Tuesday 9th February 2021
quotequote all
tryke, you're up wink

55palfers

6,142 posts

181 months

Tuesday 9th February 2021
quotequote all
That's not the only GKN factory in Brum that being closed !

There's the Aerospace factory in Kings Norton too.

https://www.birminghammail.co.uk/news/business/bir...

In the division I worked at, since the 1920s they made aircraft windows, train windscreens, armoured glass for limos, tanks, etc.

I worked there from the early '70s for 20 years when it was Triplex Safety Glass.

It got bought by Pilkington who ran it for quite a while until Asahi from Japan took over Pilks and they sold off the business to GKN who had a company making similar but complimentary aircraft screens in Luton. Melrose bought GKN over and the rest is history.

Triplex were technology leaders back in the day making screens for Spitfires and many WW2 planes, all the V Bombers, Hunters, Harriers, Buccaneers, Jaguar, A10, A6, Merlin, etc. In fact most of the UK aerospace factories output had a Triplex screen.

The RAF Cosford museum is a trip down memory lane.

They also made civil stuff such as VC10, BAC 1-11, Concorde, 747, 737, Airbus, Dash 7 & 8, ATP, HS125, Jetstream, etc., etc.

The workforce were highly skilled and innovative with some very talented engineers and designers.

Happy days.

They died for lack of investment! But that's another story.






Edited by 55palfers on Tuesday 9th February 10:48

Driver101

14,450 posts

138 months

Tuesday 9th February 2021
quotequote all
[redacted]