Plan to shut two Peterlee factories leaves 350 jobs at risk

NSK Bearing and AKS Precision Ball, which produces automotive bearings for wheels, has announced it is proposing withdrawing production from its two sites in Peterlee. 

Tokyo-based NSK said it was reorganising production sites due to “persistent challenges in the profitability of locally manufactured products”. 

The factories main customers are Volkswagen and Renault with the majority of their products, which are used in both fossil fuel and electric vehicles, being shipped to Europe.

If the closure goes ahead, it is expected to be no later than March 2027. 

Unite union said the sites both hit their performance targets and have long term viability and that it will fight “tooth and nail” to keep them open. 

Unite general secretary Sharon Graham said: “This is a complete betrayal by NSK of its County Durham workforce, who have broken their backs hitting performance targets that they were told would keep their factories safe. 

“There is a viable business case for keeping these sites open and Unite will fight tooth and nail for that to happen.”

Automotive parts suppliers are being impacted by the low volume crisis hitting car  manufacturers during the transition away from internal combustion engines to electric vehicles.

Unite said it wants government action to support automotive jobs while demand picks up.

Unite national officer Steve Bush said: “NSK doesn’t need to close these factories and Unite will be forcefully making that point during consultations. 

“Ensuring their future should be a no brainer for the government, as bearings will still be needed for cars long after diesel and petrol engines have been phased out.

“Once again, alarm bells are ringing for ministers to urgently put a comprehensive plan together to support the UK automotive industry and its supply chain though this turbulent transition and safeguard the countless jobs the sector supports.”    

A statement online from NSK said: “NSK is advancing structural reforms in its European operations.

“Due to persistent challenges in the profitability of locally manufactured products, NSK has been implementing measures such as withdrawing from unprofitable businesses and reorganizing the production sites. 

“The proposed withdrawal of production from the Peterlee site is part of these ongoing structural reforms. 

“Going forward, NSK will engage in careful consultations with all relevant stakeholders regarding the potential withdrawal. 

“If closure proceeds, we envisage this would be no later than March 2027 and the company will implement all necessary measures to support all circa 350 employees who may be affected.

“At this point in time, it is difficult to provide a reliable quantitative forecast regarding the impact of this matter on our business performance.

“We will conduct a thorough assessment and communicate the results promptly once the extent of the impact has been clarified.”

Easington Grahame Morris MP said: "The announcement of NSK’s closure in Peterlee represents a devastating loss for our local community and the wider high-skilled manufacturing sector.

"For decades, NSK has stood as a symbol of precision engineering, innovation, and the strong industrial ties between Peterlee and one of Japan’s leading manufacturing companies.

"Its presence has shaped generations of skilled workers and contributed greatly to the North East’s proud reputation for engineering excellence.

"At this difficult time, my thoughts are with the dedicated and hardworking employees whose livelihoods are now uncertain.

"I will work closely with trade unions, local stakeholders, and government representatives throughout the consultation period to make the strongest possible case for protecting this vital manufacturing facility, which remains integral to our local economy and our region’s industrial future."

Mayor Kim McGuinness said:  “NSK Bearings has become part of the fabric of Peterlee down the years. Most families will know someone working at NSK and news it might be closing down operations in the town will come as a huge shock.

"I am in touch with the unions representing NSK’s workers and we shall be seeking an urgent meeting with the owners to do whatever we can to keep the firm in Peterlee.”

Cllr Karen Allison, Durham County Council’s cabinet member for leisure, tourism, regeneration and high street, said: “We are very disappointed to learn of NSK’s decision to begin consultation on the future of its Peterlee factories.

“This is clearly an incredibly difficult time for the hundreds of staff employed across the two sites and our thoughts, first and foremost, are with the employees and their families, as well as all those whose livelihoods will be affected.

“This is also a sad moment for the wider East Durham community, where NSK has been a major employer. The economic and social ripple-effects of a closure on this scale will be significant for Peterlee and the wider County Durham area.

“We have reached out to the director of the plant to offer our support to staff throughout the process.

“This situation is a stark reflection of the wider economic pressures facing manufacturers across the UK, and the urgent need for stronger national support to protect jobs and industries in regions such as ours. Local communities should not bear the brunt of economic uncertainty or policy inaction, which are leading to tough operating conditions.”