US auto parts supplier Meritor company (Meritor Inc) recently said that its European trailer axle sectors of poor performance, the company intends before the end of July 2011 to close it. Meritor Company expects that in the next year, the company’s decision to generate related expenses will reach 17 million to 23 million US dollars.
It is reported that once it is closed down in the trailer axle manufacturing business in the Kunlan, Wales, UK, the company will be affected in layoffs in France, Spain and Italy, involving 171 employees.
Joe Mejaly, president of Meritor’s aftermarket and trailer business, said in a statement to the company that “the competitive trailer axle market in Europe requires manufacturers to be able to carry out large-scale production in order to cope with rising costs. In recent years, the commercial trailer business has been developing slowly. Therefore, we have made a decision to close down the trailer axle division in Europe."
Meritor also said: "After extensive evaluation, we found that the company could not continue to achieve acceptable financial returns. In order to better develop, our investment in the future will be tilted to other businesses."
In addition, Meritor said that the company's brake business unit in Khumblan, UK will not be affected.
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