Automotive giant Stellantis is to close its van factory in Luton and shift more production to Ellesmere Port, creating hundreds of new jobs at the Cheshire site and invest an extra £50m. Tony McDonough reports
Stellantis is to increase production of electric vans at its plant in Ellesmere Port, creating hundreds of new jobs at the site and invest an extra £50m.
And while this is good news for the Cheshire factory, which union leaders feared was under threat of closure, it means Stellantis will be closing its Luton plant with 1,100 jobs put at risk.
Last week LBN reported how Stellantis was conducting a strategic review of the Ellesmere Port site, close to the River Mersey, which employs more than 1,000 people. The 60-year-old plant had previously assembled the Vauxhall Astra.
Electric van production only began at the factory in September 2023 following a £130m investment. This has also led to a £10m investment into a new dock facility on the Mersey that brings in parts from Spain.
However, earlier this year Stellantis questioned the UK Government’s commitment to supporting EV production and warned the plant could close. Unite the union called on the company to offer clarity to its staff as soon as possible.
Stellantis has now done this although the union will be unhappy at the decision to close the factory at Luton which the automaker says will offer “greater production efficiency”. Workers at Luton will be offered the chance to relocate to Cheshire.
In a statement the company said: “While strengthening Ellesmere Port as its sustainable LCV hub in the UK with the transfer of Luton operations, Stellantis remains committed to acting responsibly toward its employees in Luton.
“If the Company proposal is approved, will offer relocation support to facilitate employees wishing to transfer to the Ellesmere Port site with an attractive package, where hundreds of permanent jobs will be created
“Dedicated comprehensive job support, including opportunities for retraining, for all employees affected will also be implemented in the very active Luton area, just one mile from the international airport.
“At the same time, Stellantis will work with local government and local employers to identify new employment opportunities within the Luton area for Stellantis employees who might be impacted by this proposal if it goes ahead.”
The Government said it while it was “encouraging to see Stellantis investing in the future of its Ellesmere Port plant, we know this will be a concerning time for the families of employees at Luton who may be affected”.