Melrose chief executive defends plans to close GKN factory near Birmingham
The buyer of engineering group GKN has defended its plans to close one of the firm’s factories after MPs complained they undermine commitments made during the takeover process.
Melrose chief executive Simon Peckham wrote to Rachel Reeves, who chairs the Business, Energy and Industrial Strategy Select Committee, saying his firm had “complied with both the letter and the spirit” of promises it made to government.
Read more: Melrose moves to losses as GKN takeover eats into finances
In the letter, seen by Sky News, he said the decision would allow GKN Aerospace to “carry out a carefully managed wind-down process over a period of more than two years for the benefit of all stakeholders.”
The Kings Norton factory outside Birmingham makes parts for aircraft.
Read more: Melrose share price tumbles following low-ball bids for GKN unit
Reeves had expressed disappointment at the announcement last week, which could see up to 200 jobs lost in 2021.
Peckham said that Melrose had been “realistic and straightforward” in recognising it would need to change GKN for the company to reach its potential.