German engineering giant Bosch is set to close a car parts factory in Wales with the loss of 900 jobs, said the company, blaming the economic downturn which has hit the automotive industry hard.

The division in charge of the plant near Cardiff will recommend to the firm’s board that production be phased out at the factory, which makes alternators for the motor industry.

A consultation period runs to the end of February so all involved can agree terms for the phase-out of production, before a final confirmation from the board.

Bosch, just the latest in a long line of automotive firms caught up in the fierce global downturn, said Thursday demand for the alternator had dropped dramatically and the firm was on track to make its first loss for six decades.

“The Bosch Group is currently facing the worst economic downturn for many decades and has been especially hit in the automotive sector,” said the company in a statement.

“In parallel to this, the automotive industry is undergoing major change as core technologies are being completely transformed to accommodate demand for smaller, more fuel-efficient and less polluting vehicles.

“All this has left its mark on the Bosch Group in 2009, which will show a negative operating result for the first time in 60 years.”

A union representative described the news as a “terrible blow” for hundreds of workers.

NO COMMENTS