More than 100 jobs will be created in the automotive components sector next year when a joint venture between Hall Engineering’s Stadco Pressings and the 49% Honda-owned Takao Kinzoku Kogyo comes on stream.
Work on a new factory will start later this year. It will be built on a greenfield site just off the M5 near Gloucester and will initially supply pressings and welded assemblies for the body shell of the new Honda Accord range. This is scheduled for launch next year from Honda’s nearby Swindon plant.
Other UK-based vehicle manufacturers, including Rover, are also ready to sign supply deals, said Mark Hughes, finance director of Hall. `By the year 2000, annual turnover is expected to be £20m,’ he said.
Stadco’s Shrewsbury factory already supplies body components for the Honda Civic as well as the Rover 200, 400 and Land Rover models.
`Even without Honda, which accounts for 30% of Shrewsbury’s £40m turnover, the plant is full to capacity. Thus, the need to invest in a new site,’ said Hughes.
During the next two years, £17.5m will be invested in buildings, plant and machinery at the new factory .