90 jobs are under threat at plant

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A car components firm has said there could be as many as 90 redundancies after it decided to stop production of alloy wheels at its Belfast plant.

Management of Montupet met union representatives on Wednesday.

The company said a drop in wheel sales is putting it at risk, but there may be fewer job losses if there is a deal to start cylinder head production.

It said it is in negotiations to start this, a move which could save 50 of the threatened jobs.

Over the past two years the Montupet Group has lost 25% of its sales volume.

"This situation is a result of primarily our loss of market share with low cost countries entering the market, for example, China; and secondly our customers losing market share in the automotive market," the company said.

"The decision of Peugeot to close its assembly plant in Ryton, which represented 25% of Montupet UK's sales volume has impacted on this situation."

Montupet said the entrance of low cost countries into the market has meant that the sales price for wheels will decrease by 25% in a five-year period.

"Despite high investment and efforts to improve our productivity we are still in a negative profit situation for wheels business."

Terry Collins from the Amicus union says the manufacturing sector is facing big challenges.

"Any job losses, especially in manufacturing gives us grave concern," Mr Collins said.

"It continues to and will continue to come under increasing pressure and cost - it's extremely difficult."