NSK Bearings Europe Ltd. (UK, a division of NSK Ltd., Japan; TSE1:6471) announced it will lay off approximately 80 workers from its Peterlee, UK plant.

Opened in 1976, Peterlee manufactures electromagnetic clutch bearings for automotive air conditioning systems, integral shaft water pump bearings, other automotive-oriented bearings, rolling elements, forgings, ball bearings, and electric power steering systems (NSK Steering Systems Europe, NSSE). NSK has been producing automotive OEM hub assembly units at Peterlee for many years. The company supplies automotive bearings to Audi, BMW, Daimler-Chrysler, Ford, GM, Honda, Jaguar, Nissan, Opel, Peugeot, Suzuki and Toyota.

Orders coming into Peterlee are reportedly running at half what they were a year ago. An NSK spokesman commented: "We have already implemented a range of measures as a consequence. Those included reduced overtime, altered shift patterns, reduced working time, removal of temporary staff, extending the Christmas shutdown, and an additional week's holiday in January. But we can see no improvement in demand this year, and things might even get worse."

After the layoffs, Peterlee's employment will be down to approximately 350.

In the past NSK has been forced to rebut rumors the facility would be shut down as the European auto industry continued to falter. In fact, however, NSK has been making regular investments at Peterlee and moved news production there.
2007 article: NSK rebuts Peterlee shutdown rumors 2005 article: NSK Peterlee sees simultaneous investment and layoffs