MADRID, Spain (AP) – U.S. auto parts supplier Delphi Corp. will close one of its factories in southern Spain, a Spanish trade union said on Friday.
Delphi’s plan puts 1,600 jobs at the plant in Puerto Real in the southern province of Cadiz at risk, the UGT labor union said in a statement. The closure was announced by the head of Delphi in Spain on Thursday, according to the union.
Workers at the plant called a rally in Cadiz on March 1 and are planning further protests to prevent the facility’s closure.
According to Spanish press reports, the company said the decision is the consequence of the plant’s significant losses of up to $196 million over the past five years and high operating costs.
Delphi said it had decided to close the factory – which produces steering, suspension and bearings – as high prices meant it was not competitive.
Delphi, a former subsidiary of General Motors Corp., filed for bankruptcy in 2005.
Delphi has about 4,000 workers in Spain in the cities of Madrid, Barcelona, Pamplona, Zaragoza and Puerto Real.