More than 100 jobs under threat as car parts firm ZF announces closure of Sunderland plant

Düsseldorf-based ZF has today, Wednesday, December 2, informed employees at its site in Mercantile Road, on Houghton’s Rainton Bridge industrial estate, about the proposed potential closure of the facility at the end of 2021.

The site employs around 110 staff involved in the production of motors for steering systems.

The firm today issued a statement outlining the reasons for the decision and blaming a lack of demand: “Volumes at the plant have fallen significantly over recent years and the site has struggled to gain new business,” it said.

“Furthermore, the plant’s relatively high-cost footprint for in-house motor production is limiting its ability to remain competitive.”

The company says already challenging trading conditions have been compounded by the coronavirus pandemic and a fall in demand during lockdown.

“The automotive industry has been subjected to a number of market challenges over the last two or three years which have been severely compounded by the Corona pandemic, with recovery expected to take several years,” it said.

“The closure of the Sunderland manufacturing facility is a necessary step in order for ZF to adapt capacities, competitiveness and footprint in line with future business requirements.

“ZF will begin the collective consultation process well ahead of the proposed plant closure date to give employees the opportunity to prepare for the future.

“The company is committed to supporting its employees in finding new employment during this difficult period.”

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