Switch Mobility to shut down a UK plant

Switch Mobility Limited, U.K. (Switch UK), a step-down subsidiary of Ashok Leyland, has decided to initiate talks with the employees to shut down its manufacturing facility at Sherburn in the U.K.

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The facility makes electric buses. Switch Mobility has a presence across the U.K. and Europe.  “In the wake of continuing general economic uncertainty within the overall bus manufacturing sector in the U.K. and consequent inability to derive the benefits of scale, the Board of Directors of Switch UK today (on Wednesday) approved commencement of consultation process with the employees which could potentially lead to cessation of its manufacturing and assembly activities at its Sherburn facility,” Ashok Leyland said in filing with the stock exchange.

 “Switch UK has no plans to exit the UK market. It will execute and complete all the orders on hand and will continue to provide aftermarket and service support from two other facilities in Rotherham and Thurrock for the existing vehicle,” Ashok Leyland further said.

Ashok Leyland Ltd., the flagship company of the London-based Hinduja Group, it may be recalled, acquired 26 per cent stake in Optare plc, a leading bus manufacturer in the U.K, sometime in 2010. It increased its holding subsequently and renamed it as Switch Mobility later.

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