Hundreds of Jobs at Risk as NSK Announces Factory Closures
A major Japanese manufacturer is set to close its factories in the North East of England, putting hundreds of skilled jobs in jeopardy. NSK, a key supplier to the automotive industry, has confirmed plans to shut its two sites in Peterlee, County Durham, citing persistent unprofitability.
The Impact on the Local Workforce
The proposed closure, which would be completed by March 2027, directly threatens the livelihoods of up to 400 employees. The company, which first began operations at Peterlee in 1976, produces essential bearings for steering columns and wheel hubs. Its prestigious client list is understood to include major car manufacturers such as Nissan, Volkswagen, and Renault.
NSK has stated that it has begun a consultation process with union representatives. However, Unite the Union has responded with fury, labelling the announcement a "complete betrayal" of a dedicated workforce. The union has pledged to fight the closures and is calling for government intervention to protect these vital automotive jobs.
Challenges in the UK Manufacturing Sector
In its official statement, NSK Europe pointed to "persistent challenges in the profitability of locally manufactured products". While the Peterlee facility is notably powered entirely by wind energy, the broader UK manufacturing sector has faced significant headwinds in recent years. These include complications from Brexit-related red tape and soaring energy costs.
Unite the Union, however, attributes the pressure to wider issues within the automotive supply chain. The organisation's general secretary, Sharon Graham, stated that weak demand from car manufacturers during the complex transition from internal combustion engines to electric vehicles is a key factor. She asserted, "There is a viable business case for keeping these sites open and Unite will fight tooth and nail for that to happen."
NSK has other manufacturing facilities in the UK at Newark in Nottinghamshire, as well as three more in Germany and Poland. The company has said it will provide support measures for affected staff if the closure proceeds, though the full impact on its business performance remains undetermined.
