A vehicle components company has announced it’s going to close its manufacturing unit in South Wales with the loss of 125 jobs.
Hi-Lex Cable System Company, based in Port Talbot, manufactures window and car door parts for organizations which include Ford and Honda.
The company said in a letter despatched to clients on Monday that the web page would close in 2021 because of a predicted “widespread reduction in sales”, with Honda’s Swindon plant because of near the identical 12 months.
The letter stated: “At a meeting held in Takarazuka, Japan, on October 12, the board of administrators of Hi-Lex Corporation mentioned and agreed a restructure of its operations in Europe.
“As an end result of the dialogue, the choice becomes taken to close the Hi-Lex Cable System Co. Ltd facility in Port Talbot, South Wales, in 2021 with all its ultimate commercial enterprise to be transferred to the Hi-Lex facility placed in Retsag, Hungary.
“Hi-Lex Corporation regrets the want for the selection to restructure its operations, however, it’s far based solely upon a substantial discount within the income forecast at HCS (Hi-Lex Cable System), from 2021 onwards.
“Hi-Lex will now touch all of our supply chain partners to talk about and agree on plans to meet the needs of our clients up to the closure of the HCS facility.”
The corporation’s coping with director Adam Glaznieks stated the plant’s a hundred twenty-five personnel were informed of the decision on Monday and were instructed the business enterprise “did now not count on any redundancies in the subsequent 365 days”.
Mr. Glaznieks showed vehicle large Honda’s plans to close its UK manufacturing unit in 2021, with the lack of three,500 workers, had contributed to the decreased income forecast.
He stated: “Honda is a prime customer of Hi-Lex, therefore, it’s far a part of the great reduction in income forecast from 2021 onwards.”
The leader of Neath Port Talbot Council, Rob Jones, said tries might be made to guide employees, but said the firm’s closure might be “keenly felt” within the location.
He said: “This auto components firm has been an essential part of Neath Port Talbot Council’s economic system for greater than two decades and the impact of its closure will now be keenly felt in this location.
“We will attempt to assist Hi-Lex employees anyplace we are able to into new employment and will also paintings with the Welsh Government and different partners to mitigate the effects of these process losses at the people themselves and the nearby area.”
Bethan Sayed, the Plaid Cymru AM for South Wales West, blamed the closure on Brexit, saying it was “riding uncertainty in the automobile industry”.
She stated: “The Welsh Government needs to realize that if the Welsh automotive enterprise is to thrive in the future, it should make investments time and money, as other governments have done, to make sure the industry innovates. We’ve visible little or no of that going on up to now.
“But I have to mention that it cannot be denied that Brexit has played a position on this closure. It is riding uncertainty within the automotive enterprise, and now we see 125 Welsh jobs moving from Wales to Hungary, that’s inside the EU.”
The Japanese owned Hi-Lex Cable System Company became the first company to set up on the Baglan Energy Park whilst it opened in 1996.
Bosses advised council officers the closure became related to the reality Volvo’s new engine could have digital transmission and will now not require cabling, in addition to the closure of Honda’s Swindon site which made up around forty% of its commercial enterprise.
Hi-Lex additionally said its enterprise could be stricken by the ultimate paintings for Ford Europe being transferred to Hungary.