The Business, Energy and Industrial Strategy
Committee has today published correspondence
(attached) from Melrose Industries Chief Executive Simon Peckham
in response to a letter from
BEIS Committee Chair MP.
Commenting on the response, , Chair of the Business,
Energy and Industrial Strategy Committee,
said: “Melrose’s shutting down of the GKN King’s Norton
plant seriously undermines their commitment to boosting the UK’s
industrial base. Melrose’s letter is content to set out their
investment, albeit at levels similar to the recent pay packets of
Melrose bosses, but it fails to provide any detail on the reasons
for the closure of the King’s Norton plant. Nor has Melrose taken
the opportunity to give firm assurances about the redeployment of
workers. Workers deserve a better explanation of the factors
behind the decision to close the plant. They also deserve greater
reassurance that these jobs are not just going to be shifted away
from King’s Norton but out of the UK altogether.”
The Chair’s letter, sent last week,
referred to the commitments and undertakings made by Melrose as
part of its takeover of GKN. The letter asked for reasons behind
the closure, the likely impact on suppliers, and how many jobs
are likely to be moved to other parts of the business.
The correspondence also asked for an update on the fulfilment of
Melrose’s post-offer undertakings, in particular in relation to
the level of investment in R&D at GKN since the takeover.
ENDS
The Business, Energy and Industrial Strategy (BEIS) Committee
held an evidence session on the Tuesday 6 March
2018 at the then proposed takeover of
GKN by Melrose with witnesses including Anne Stevens, Chief
Executive, GKN, Christopher Miller, Co-founder and Executive
Chairman, Melrose Industries, and Tony Burke, Assistant General
Secretary for Manufacturing, and Steve Turner, Assistant General
Secretary for Aerospace, Unite the union. More information on the
GKN inquiry can be found here
