Car parts firm to close in Port Talbot with loss of more than 100 jobs

A car parts firm is to close with the loss of 125 jobs.

Hi-Lex Cable System Company parts and cables for cars at its plant in Port Talbot.

The business has forecast a "significant reduction in sales," and told its 125 employees that they would be losing their jobs after a meeting of the company directors in Japan last week.

It supplies companies worldwide, including Ford plants in Turkey, but has made the decision to axe its Port Talbot factory and move any remaining business to its site in Retsag, Hungary.

The potential impact of Brexit is not being linked to production moving to Hungary, according to the site’s management.

Honda is set to close its Swindon plant Credit: PA Images

HI-LEX’s Managing Director did say the move is because of an expected reduction in business when one of their major customers, Honda, closes their factory in Swindon in 2021.

3,500 jobs will go when Honda shuts its doors. Business Secretary, Greg Clark, said the decision was “devastating” for Swindon and the UK when it was announced in February 2019.

In the last two weeks, two other companies have entered administration in Wales, with the total loss of almost 500 jobs.

The leader of Neath Port Talbot Council, Councillor Rob Jones, said the closure would be "keenly felt" in the area.

Economy Minister Ken Skates said the announcement is "deeply disappointing" and it is an "extremely challenging time for our economy".

"The Welsh Government will do all it can to support people affected by this news... Between now and when the site closes, we will focus on working with partner agencies such as Careers Wales and Jobcentre Plus to seek alternative employment for the company’s workforce", Mr Skates said.

"This is an extremely challenging time for our economy, not least due to the uncertainties caused by the UK Government’s handling of Brexit, but the Welsh Government will continue to do its utmost to protect individuals, communities and businesses."