German automotive supplier Schaeffler set to shut down two factories in Britain as part of changes prompted partly by Britain’s planned exit from the European Union. 

German automotive supplier Schaeffler (SHA_p.DE) will shut two factories in Britain as part of changes prompted partly by Britain’s planned exit from the European Union, it said on Tuesday.   FILE PHOTO: CEO of German car parts supplier Schaeffler Klaus Rosenfeld (R) Maria-Elisabeth Schaeffler (C) owner of German company Schaeffler Group and her son Georg Schaeffler, smile after the initial public offering of the company at the Frankfurt stock exchange, Germany October 9, 2015. REUTERS/Ralph Orlowski/File Photo The ball bearings maker said its factories in Plymouth and Llanelli, Wales, would be shut down in the medium term, with production shifting to Germany, China, South Korea and the United States.  A logistics centre in Sutton Coldfield will also close and operations consolidated mostly at its centre in Hereford, Schaeffler said.  Its plant in Sheffield, its largest in Britain by revenue and workers, will survive.  Schaeffler, which employs 92,000 worldwide, employs just over 1,000 people in the UK.  It said its closure plans follow a review of its global production network which took into account future supply and demand, economic conditions, and decisions being made by carmakers.  “Brexit is clearly not the single decisive factor behind our decision-making for the UK market, but the need to plan for various complex scenarios has brought forward the timing,” Juergen Ziegler, Schaeffler’s manager responsible for Europe, said in a statement.  In Llanelli Schaeffler makes mechanical tappets and bearings for the auto industry. It produces spindle bearings and machine parts and specialised bearings for the aerospace and defence industries in Plymouth.  Schaeffler said only 15 percent of the goods it produces in the UK remain in the country, with most production being exported to continental Europe.  Carmakers are worried that port and road delays could slow the movement of vehicles and components, crippling output and adding costs, if Britain fails to reach a trade agreement with the European Union over its planned departure from the bloc next March.  A ‘no deal’ Brexit could mean tariffs of 10 percent under World Trade Organisation rules that would add an average of 3,000 euros to the cost of British-built cars sold in the EU if fully passed on to buyers and add 1,700 euros to the cost of European cars imported into Britain, the UK’s Society of Motor Manufacturers and Traders (SMMT) said in September.  Most German firms which export to Britain are poorly prepared for a no-deal Brexit, a survey by the IW economic institute showed on Tuesday.

 The company authorities said its factories in Plymouth and Llanelli, Wales, would be shut down in the medium term, with production shifting to Germany, China, South Korea and the United States. 

A logistics centre in Sutton Coldfield will also close and operations consolidated mostly at its centre in Hereford, Schaeffler said.

 Its plant in Sheffield, its largest in Britain by revenue and workers, will survive. Schaeffler, which employs 92,000 worldwide, employs just over 1,000 people in the UK.

 It said its closure plans follow a review of its global production network which took into account future supply and demand, economic conditions, and decisions being made by carmakers.

 “Brexit is clearly not the single decisive factor behind our decision-making for the UK market, but the need to plan for various complex scenarios has brought forward the timing,” Juergen Ziegler, Schaeffler’s manager responsible for Europe, said in a statement.

 In Llanelli Schaeffler makes mechanical tappets and bearings for the auto industry.

It produces spindle bearings and machine parts and specialised bearings for the aerospace and defence industries in Plymouth.

 Schaeffler said only 15 percent of the goods it produces in the UK remain in the country, with most production being exported to continental Europe. 

Carmakers are worried that port and road delays could slow the movement of vehicles and components, crippling output and adding costs, if Britain fails to reach a trade agreement with the European Union over its planned departure from the bloc next March.

 A ‘no deal’ Brexit could mean tariffs of 10 percent under World Trade Organisation rules that would add an average of 3,000 euros to the cost of British-built cars sold in the EU if fully passed on to buyers and add 1,700 euros to the cost of European cars imported into Britain, the UK’s Society of Motor Manufacturers and Traders (SMMT) said in September.

 Most German firms which export to Britain are poorly prepared for a no-deal Brexit, a survey by the IW economic institute showed on Tuesday.

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