French car parts maker Valeo said on Friday, April 27, it would close two factories at its Sylea unit, at a cost of 598 jobs, as the company responded to price pressure from low-cost producers.
Valeo has been hit by a drop in car production in Europe and North America, price cuts demanded by North American car manufacturers, and the company's own productivity problems.
Sylea SA of France, which lost 84.6 million francs (€12.9 million, $11.5 million) in 2000, makes car dashboards.
The firm was "facing increasing pressure on prices" as "all its competitors have operations in countries with low cost of labor," Valeo said in a statement. The company would try to avoid compulsory redundancies, it said.
The production will be moved factories in Morocco, Tunisia, Spain, Portugal and other Sylea plants in France. The two factories to close are in Vire, northern France, and Cahors in the south. — (AFP, Paris)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)