Hundreds of Jobs at Risk as NSK Announces Factory Closure
A major Japanese manufacturer has dropped a bombshell announcement, revealing plans to shut down a key UK factory and placing hundreds of local jobs in jeopardy. NSK, a leading supplier of automotive components, has confirmed it is proposing to close its long-standing facility in Peterlee, County Durham.
The company stated the difficult decision forms part of a wider strategy to exit businesses that are no longer profitable. The proposed shutdown directly threatens the livelihoods of the approximately 350 people employed at the site.
Why is the Peterlee Site Closing?
NSK first opened the doors to its Peterlee operation back in 1976, establishing itself as a significant local employer for nearly five decades. The factory specialises in producing precision bearings for steering columns and wheel hubs, vital components for the automotive industry.
Its customer base is understood to include the giant Nissan plant in Sunderland, another major Japanese employer in the North East. Despite this prestigious clientele, NSK Europe reported facing persistent challenges in the profitability of its locally manufactured products.
This move highlights the ongoing pressures on the UK manufacturing sector, which has been grappling with issues like high energy costs. Interestingly, the Peterlee factory is believed to have been powered exclusively by wind-generated electricity, indicating that even adopting green solutions does not always guarantee commercial viability in the current economic climate.
What Happens Next for the Workforce?
NSK has now formally entered a period of consultation with union representatives regarding its closure proposal. The company has indicated that if the shutdown proceeds, it will be finalised no later than March 2027.
In its official statement, the firm committed to continuing discussions with stakeholders and providing support measures for affected staff. The full impact of this decision on NSK's overall business performance has not yet been determined.
While the Peterlee site faces closure, NSK will continue its other UK operations, including a manufacturing facility in Newark, Nottinghamshire. The company also runs three additional plants in Germany and Poland.
