PSA Peugeot Citroen Announces Intention To Cease Production At Ryton In 2007

Jean Martin Folz, Chief Executive Officer of PSA Peugeot Citroen, has today announced to staff and Trade Unions that it is the Group’s intention to cease activity at its Ryton manufacturing facility near Coventry in the West Midlands in 2007.

The proposal follows a detailed study during the first quarter of 2006 by the Group of its industrial cost effectiveness which has clearly confirmed the weaknesses for the Ryton plant - high production and logistical costs - which mean that the Group is unable to justify the investment needed for the production of future vehicles.

These internal factors, together with reduced demand and intense competition in Europe, have led the Group to come to this difficult conclusion, having already reduced production at a number of other European sites at the end of 2005.

The Group’s proposal is that production at Ryton is brought to a close in two phases; in the first instance the factory, which today operates two shifts, moves to a single shift in July 2006, with production not continuing beyond mid 2007. For the Group, 2300 jobs are affected.

Having presented the proposal to its staff at the plant, the Group will now enter into consultation with the Trade Unions. The Group remains committed to its social responsibilities and will work closely with Trade Unions and Government throughout the coming months to provide a comprehensive support package for its staff and to help as many as possible to find alternative employment.

Published : 19/04/06 Author : Melanie Carter

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