Jobs in balance from firm's plans

Haldex, based at Glenfield Park Industrial Estate in Philips Road, Blackburn, manufactures brake systems for trucks and trailers.

The company's 15-year lease on its Blackburn premises expires at the end of the year and bosses are deciding whether to shift the whole operation, possibly abroad, or remain where they are.

High costs of labour and components are being cited for the decision to review the factory's future. The workforce of the company has been halved in the past five years as two significant product lines have ended.

The premises at Glenfield Park are not being used to their full capacity.

Bosses say they have four options: to remain where they are, to move to a smaller base in Blackburn, to move to the company's UK headquarters in the Midlands or to move abroad.

The decision will be made in the next 11 months and the company said the workforce was being kept up-to-date with developments.

Haldex bought the Blackburn operation, which was previously known as Berg Manufacturing and Grau Girling, in March 1998.

As well as Sweden and the head office in Redditch, where 170 are employed, Haldex has factories in Germany, the US, Mexico, India, China and Brazil.

Maurice Walton, marketing manager for Haldex, said: "We are taking the decision to renew the lease as an opportunity to review our manufacturing strategy.

"One of the options is to remain at the site, another is to find other smaller premises in Blackburn because we are not utilising all the space in that factory.

"We could move to our head office in Redditch and we could also move abroad.

"We have 11 months to look at what we want to do and where we want to be as a business.

"This is such a significant decision we have to recommend to our main board in Sweden what the best option would be.

"It is quite a long-winded process but no decisions have been made yet.

"When the decision is taken the workforce will be the first to know."