Kings Norton factory closure: Melrose Chief Executive response published
12 April 2019
- Read the response from Melrose Chief Executive (pdf, 495KB)
- Inquiry: The future of GKN
- Business, Energy and Industrial Strategy Committee
Chair's comment
Chair of the Committee, Rachel Reeves, said:
"Melrose's shutting down of the GKN King's Norton plant seriously undermines their commitment to boosting the UK's industrial base. Melrose's letter is content to set out their investment, albeit at levels similar to the recent pay packets of Melrose bosses, but it fails to provide any detail on the reasons for the closure of the King's Norton plant.
Nor has Melrose taken the opportunity to give firm assurances about the redeployment of workers. Workers deserve a better explanation of the factors behind the decision to close the plant. They also deserve greater reassurance that these jobs are not just going to be shifted away from King's Norton but out of the UK altogether."
Chair's letter to Melrose
The Chair's letter, sent last week, referred to the commitments and undertakings made by Melrose as part of its takeover of GKN. The letter asked for reasons behind the closure, the likely impact on suppliers, and how many jobs are likely to be moved to other parts of the business.
The correspondence also asked for an update on the fulfilment of Melrose's post-offer undertakings, in particular in relation to the level of investment in R&D at GKN since the takeover.
Further information
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