Vehicle piston manufacturer Mahle plans to close Catalan plant, laying off 345 people
German automotive parts maker has a factory in Vilanova i la Geltrú
The German vehicle piston manufacturer Mahle has plans to close a plant in Vilanova i la Geltrú, 40 km southwest of Barcelona, laying off its 345 workers.
In a statement released on Wednesday, the firm will cease activity on January 28, 2022, due to "a continued fall in demand and the ever-growing price competition."
The company says that these circumstances lead to the plant "working well below its normal capacity," and argues that production is no longer possible in Vilanova i la Geltrú.
"This measure is resulting from the transformation of the automotive industry towards a carbon zero mobility and a clear trend to abandon combustion engines."
Mahle says the decision does not affect its other plants in Spain, including that of Montblanc and L'Espluga de Francolí.
Unions: disproportionate decision
The decision has not been welcomed by trade unions, including CCOO, which calls for "a U-turn."
"It is a completely disproportionate decision," the organization said in a statement urging alternative measures to avoid layoffs.
CCOO also demands the involvement of Catalan and Spanish authorities.