Mahle Engine Systems UK Ltd. (formerly Dana Engine Parts, formerly Glacier Vandervell) will cut at least a third -- more than 150 workers -- from its Kilmarnock, Ayrshire, Scotland bearing factory, leaving approximately 300.
Kilmarnock manufactures high-volume cast and bimetal thinwall engine bearings, bushings and thrust washers. Customers range from OEM to aftermarket to motorsports.
Mahle blamed the layoffs on continued weakness across the board in the automotive, light truck and off-road sectors. Aftermarket and motorsport sales are reportedly down, but to a lesser extent.
In early 2007, Mahle acquired the Engine Parts Business from Dana Group after two years on the market as "nonstrategic" for Dana. That acquisition involved five bearing manufacturing plants across Europe -- Kilmarnock, UK; Bathgate, UK; Chavanod, France; Trento, Italy; and Dolny Kubin, Slovakia. An R&D center in Rugby, England was also involved. Dana had acquired Glacier Vandervell Bearings in 1988 from Federal-Mogul Corp. for $410 million.
Mahle closed the nearby Bathgate specialty and motorsports bearing plant in April 2008, shifting production and 50 jobs to Kilmarnock.
Beginning in 2009, Mahle is now "retiring" the Glacier Vandervell brand name for engine bearings, replacing it with the Mahle brand. Glacier Vandervell engine bearings had been stamped with "VP" and will gradually be changed over to "m".
Mahle gave the required 90-day notice at Kilmarnock, so the layoffs will all be in place by May 2009. Mahle said: "The 90-day notices are a result of the global recession. Our order book has dropped but it's not because the work is going anywhere else. The work just isn't there."
At one time, under Glacier Vandervell, the Kilmarnock plant had employed nearly 3,000 people.
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