Around 200 workers at Stadco in Shrewsbury are set to see their jobs moved, following a proposal to close the factory.
Employees at Stadco in Harlescott, which is a manufacturing division of Magna International Inc.’s Cosma International operating unit, were told the news on Wednesday evening.
In the announcement, they were told that jobs would be offered at its parent company’s other locations in Telford, Llanfyllin near Oswestry and Castle Bromwich.
The proposed closure is reported to be a response to challenging market conditions and is said to be the best move for the future growth of the company.
In a statement released on Thursday, Tracy Fuerst, global director of corporate communications and public relations for Stadco, confirmed employees were told of the proposal to transfer their current business to neighbouring Magna facilities and that the factory would potentially close by mid 2019.
In 2014 more than 200 jobs were created at the Shrewsbury factory after the firm won a £15 million pound contract to supply Jaguar Land Rover with parts.
Magna’s sister firm Cosma opened a factory in Telford earlier this year, it employs around 300 people.