LucasVarity sheds 750 jobs following ?4bn US takeover

LucasVarity sheds 750 jobs following ?4bn US takeover
Alex Mayhew-Smith Automotive parts manufacturer LucasVarity has axed 750 jobs at its Welsh car components facility after agreeing to a ?4bn takeover by US steering systems and aerospace manufacturer TRW. The company will cease the production of wiring harnesses at the Lucas SEI site in Ystradgynlais, near Swansea, and move the work to facilities in Eastern Europe. The jobs will go by the end of July, said the firm. Lucas SEI, a joint venture between LucasVarity and Japanese firm Sumitomo Electric Industries, added that the cuts were part of the restructuring of its US business. TRW chairman Joe Gorman has said that under the US firm, the number of LucasVarity jobs would increase and cost savings would reach $200m yearly by 2001. The deal with TRW will create the world’s second largest automotive components supplier. A rival bid by Federal-Mogul is expected this week, although its previous offer of ?3.9bn mixed cash and shares has already been rejected.


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