The recent collapse in European car sales has forced Stokes Group, a UK-based subsidiary of Mahindra Forgings, to close its manufacturing plant in Walsall, West Midlands by April-end. The company said that the move is likely to affect jobs of 137 employees.
"The company has been operating in a challenging environment for some considerable time and the recent collapse in car sales has negatively impacted the current prospects," the company said.
Stokes Group, which engages itself in the supply of forged and machined components to the automotive industry, said that towards protecting the future, the business must now be restructured in line with current and future demand to ensure an ongoing viable operation.
The forging and machining operations of the company would now be concentrated at the company's other two sites in Dudley and Brierley Hill.
To support the transfer of operations, 52 additional jobs would be required at the Dudley and Brierley Hill plants, the company said.