A car parts firm has announced it will close its factory 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 companies including Ford and Honda.
The company said in a letter sent to customers on Monday that the site would close in 2021 due to an expected “significant reduction in sales”, with Honda’s Swindon plant due to close the same year.
The letter said: “At a meeting held in Takarazuka, Japan, on October 12, the board of directors of Hi-Lex Corporation discussed and agreed a restructure of its operations in Europe.
“As a result of the discussion, the decision was taken to close the Hi-Lex Cable System Co. Ltd facility in Port Talbot, South Wales, in 2021 with all its remaining business to be transferred to the Hi-Lex facility located in Retsag, Hungary.
“Hi-Lex Corporation regrets the need for the decision to restructure its operations, but it is based solely upon a significant reduction in the sales forecast at HCS (Hi-Lex Cable System), from 2021 onwards.
“Hi-Lex will now contact all of our supply chain partners to discuss and agree plans to meet the needs of our customers up to the closure of the HCS facility.”
The company’s managing director Adam Glaznieks said the plant’s 125 employees were informed of the decision on Monday, and were told the company “did not anticipate any redundancies in the next 12 months”.