The video will start in 8 Cancel

Never miss a big story in Plymouth again with our daily newsletters Sign me up! Thank you for subscribing See our privacy notice Invalid Email

A huge Plymouth factory is to close after 51 years putting 400 jobs at risk as its parent firm moves production overseas – blaming Brexit.

Global automotive and industrial supplier Schaeffler is to close The Barden Corporation (UK) Ltd plant in Estover within the next two years, just a year after announcing it would be investing £15million into the factory.

The Plymouth operation produces precision bearings for cars, aircraft, the nuclear industry, missiles and satellites.

But its German owner has announced a huge restructuring which will see it close its bases in Plymouth and Llanelli, merge logistics centres in Hereford and Sutton Coldfield, but retain a factory in Sheffield.

The company said: “The uncertainty surrounding Brexit was one factor amongst others in the analysis of the UK market.”

(Image: Penny Cross)

It explained that only 15 percent of the goods Schaeffler produces in the UK remain in the country, while the vast majority is exported to continental Europe.

So it is proposed to shift production from Plymouth to existing plants outside the UK, in the USA, China, South Korea and Germany.

It said the Plymouth site mainly produces spindle bearings and machine parts for Schaeffler’s Industrial division and additionally specialised bearings for the aerospace and defense industries.

Staff at the Plymouth factory were told the plant would be closing by managing director Jon Everett at a meeting early on Tuesday, November 6, 2018.

(Image: Penny Cross)

One staff member, who asked to remain anonymous, said: “It will be gone in two years, that’s 400 jobs.”

Schaeffler is now entering into statutory consultations with elected representatives for all employees at the locations affected, including Plymouth.

Juergen Ziegler, Regional chief executive Europe, said: “A global business needs to regularly review market conditions and strive to optimise its footprint across different regions.

“The proposed measures we have taken for the UK reflect this business reality.

“However, we remain committed to keeping certain activities in the UK, a country that will continue to be important to us.”

He added: “The changes to our UK footprint are designed to make us more efficient by relocating parts of our production closer to where our products are used.

“What we are planning for the UK delivers on our Agenda 4 plus One programme.

“Brexit is clearly not the single decisive factor behind our decision-making for the UK market, but the need to plan for various complex scenarios has brought forward the timing.”

(Image: John Allen)

Greig Littlefair, managing director of Schaeffler UK, said: “We are committed to having transparent and fair discussions with the employees affected by these proposals.

“We will also ensure our customers continue to be served and that these proposed changes create minimal disruption for them.”

The shock announcement comes just a year after it was announced more than £15million was to be pumped into the Plymouth operation – to safeguard it for another 50 years and create jobs.

The Barden Corporation embarked on a five-year growth plan to explore new markets, territories and products.

The plan was to increase turnover from £40million to £50million annually and provide long-term stability.

Time Line Barden Corporation - the history 1942 The Barden Corporation is set up in the USA by Theodore Barth and Carl Norden to make bearings for navy bombsights. 1947 Electrical Mechanical Optical (EMO) Instrumentationfounded in London by Bill Spencer and Stan Hensby, initially to refurbish ball bearings. 1960 The firms merge creating Barden Corporation (UK) Ltd, with an assembly plant in Plympton. 1967 The business moves to its current Estover base and expands, before being bought by German firm FAG Kugelfischer. 1992 The entire UK operation is consolidated in Plymouth in 1992. 2001 FAG is acquired by the Germany-headquartered multi-national Schaeffler Group in 2001. Schaeffler, renowned for supplying the automotive industry, has 76,000 employees, working in more than 180 locations in more than 50 countries, and a turnover in 2012 of 11.1billion euros. 2013 The firm reports a huge increase in sales, rising from £23million in 1998 to nearly £46million, under managing director Ian Bunage 2014 Barden is named Large Business of the Year at the Herald Business Awards 2016 Jon Everett succeeds Ian Burnage as managing director when Mr Burnage leaves to form his own business. Mr Everett, who joined from Midlands manufacturer Ultra Electronics PMES, is a former Plymouth-based commando. He was with 29 Commando Royal Artillery for 18 years, leaving as a major – and superior to current Moor View Tory MP Johnny Mercer. 2018 Schaeffler announced it is to close The Barden Corporation (UK) Ltd plant in Estover within the next two years with the loss of about 400 jobs, blaming Brexit among other considerations

Want to read more?

To keep up to date with Plymouth Live's latest news, follow us on Facebook here and Twitter here , or visit our homepage at www.plymouthlive.com

For Devon news, find Devon Live's Facebook page here , or Twitter here , or homepage at www.devonlive.com

For Cornwall news, find Cornwall Live's Facebook page here , or their Twitter page here , or visit their homepage at www.cornwalllive.com