Dura Automotive

Dura Automotive announced on 8 June that it is proposing to close its plant in Bynea, Llanelli, by December 2006.  The company currently employs around 270 staff and all of these staff will be affected by the closure.

This is an extremely disappointing announcement.  I know that Members will join me in expressing our concern for the workers and their families.

The company did not give the Assembly Government advance warning of its announcement.  Officials made immediate contact and have met company representatives today (Friday, 9 June) and I am also seeking a meeting to discuss the situation with the Vice President and General Manager of the company myself.  Clearly, if the closure decision can not be reversed then our first concern will be to offer the most effective assistance we can to the workforce.          

The company traces its roots in Llanelli back over more than 100 years.  It manufactures car cable control systems for a range of automotive customers.  We know from our work with the company that the quality achieved at the Llanelli plant has been extremely high, with customers returning as few as 50 parts per million.  The plant has held the demanding automotive quality award TS16949 since 2001 and has done much excellent work with its supply chain.  

We understand that unsatisfactory financial results and the global competitive environment within the automotive sector have led to the US-based parent company deciding to close the plant.  The closure in Llanelli is part of a wider restructuring by the global business, which also includes the recently announced closure of a plant in Ontario, Canada.  Work carried out in Llanelli is to be transferred to the Czech Republic.          

The plant has benefited in the past from assistance from the Assembly Government and the former WDA.

Regional Selective Assistance grant of £3m was offered to the company in 2000 towards investment at the plant totalling £9.7m, both safeguarding and creating jobs.  In the event, £1.9m was paid to the company as the project was not fully completed.  We are now at the close of the conditions period and a repayment of £200,000 has been agreed with the company, because required job numbers were not maintained.        

Property Development Grant of £480,000 was offered to the company in 2002 towards the costs of an extension at the plant.  The company has also been involved since 1992 with the Accelerate Wales programme and has been funded for work to develop its supply base, winning the ‘most improved supply chain’ award in 2005.        

The workforce in Llanelli can only be commended for their achievements in recent years.  It is hugely disappointing that the plant should now have now fallen victim to the global market forces which the company says have lead to its decision.  

Suggestions that the Assembly Government has not had an ongoing dialogue with this company are wrong.  In recent months, there has been close contact with them in order to conclude discussions on the RSA-supported project and in the context of Accelerate Wales.  However, the company at no time indicated to us its intention to close the plant.

If the proposal to close the plant is confirmed, I will ensure that officials across the Team Wales agencies do all that they can to help the workers affected.  There are well established arrangements in Carmarthenshire for delivering an intensive and co-ordinated package of support involving Carmarthenshire County Council, Jobcentre Plus, Careers Wales, DELLS and my Department.  The public sector help available will include helping the Dura employees to find alternative employment and skills training if necessary.                              

We understand that Dura has no alternative employment opportunities within the UK but that there will be opportunities for contract work in the Czech Republic.  

The claimant count in Carmarthenshire in April stood at 2.1%, indicating that demand for labour in the county remains strong.  We are currently supporting projects in the county that will create further new jobs.  However, I would not wish to understate the impact that closure of the Dura plant will have on the workers affected and on the town of Llanelli.      

I will keep the Enterprise, Innovation and Networks Committee and Members briefed on further developments.