Ford has confirmed that it is going ahead with the planned closure of its engines production factory in Bridgend, Wales, next September.
The company has started a consultation process for the closure, blaming “significant underutilisation” of the plant for the decision.
"Creating a strong and sustainable Ford business in Europe requires us to make some difficult decisions, including the need to scale our global engine manufacturing footprint to best serve our future vehicle portfolio,” said Ford of Europe president Stuart Rowley in a statement.
"Changing customer demand and cost disadvantages, plus an absence of additional engine models for Bridgend going forward make the plant economically unsustainable in the years ahead," said Rowley referring to the end of a supply contract to Jaguar Land Rover in 2020.
JLR will be producing engines in-house at its Wolverhampton facility as of next year.
According to Reuters, Ford’s Bridgend plant in Wales built around 20% of the UK’s 2.7 million automotive engines last year.
Ford manufactures over a million engines at its two UK locations in Bridgend and Dagenham in eastern England.
According to Rowley, slowing demand for petrol engines and a shift towards hybrid models were deciding factors for the closure.
Ford announced in December last year that it was working on a restructuring plan for Europe called Sprint to 6 Reset and Redesign.
The company is also closing down plants in France, Germany and Russia as part of its pan-European restructuring.