South Wales aluminium factory to manufacture low-emission taxi

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This article titled “South Wales aluminium factory to manufacture low-emission taxi” was written by Richard Partington, for The Guardian on Sunday 17th September 2017 23.01 UTC

Plans to introduce low-emissions taxis in London are helping create more than 130 jobs in south Wales, as the firm tasked with making lightweight bodywork for eco-friendly black cabs reopens a factory in the area.

The Norwegian aluminium company Sapa is investing £9.6m to reopen a mothballed plant in Bedwas, near Caerphilly, which it closed in 2014 because of tough market conditions and overcapacity. The reopening brings back the same number of jobs over the next five years as were lost in the closure.

Related: Britain to ban sale of all diesel and petrol cars and vans from 2040

The investment, which is also backed by £550,000 from the Welsh government, comes at a time when manufacturers face growing uncertainty over Brexit. It also comes as carmakers seek to develop eco-friendly vehicles ahead of a move to ban sale of diesel and petrol cars and vans in the UK from 2040.

The first customer to be supplied goods made at the refurbished facility will be the London Electric Vehicle Company, which is developing a zero-emissions taxi for the capital’s polluted streets. Sapa said the support from the Welsh government helped it to pick the plant over another European facility with spare capacity. The Bedwas site has been changed from an aluminium extrusion plant before its closure in 2014 to a new facility on the same site set up to produce specialised automotive components.

Although the reopening of the plant will return the same number of jobs lost in 2014, there is potential for hundreds of additional jobs in future. Production is due to start in the final months of 2017, with a steady increase over the next five years. Materials used in the plant will be sourced from Spain.

Recent surveys of manufacturers have found reluctance to invest in their operations at a time of heightened uncertainty over Brexit.

Carwyn Jones, the Welsh first minister, said he was delighted the facility in Bedwas would be brought back into operation. “The opening will create a range of new job opportunities and give a new lease of life to the area,” he said.

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