REDDITCH MP Rachel Maclean has spoken with company bosses at Redditch global giant GKN following news the firm is at risk of a hostile takeover.
She was told that staff in Redditch ‘have been told in no uncertain terms their jobs would no longer exist if (predator firm) Melrose were to take over.’
“This is not a benign takeover in the best interests of the long-term sustainability of the economy,” said Mrs Maclean.
“GKN is a respected and old-established UK company with a long heritage in engineering and defence products.
“There is a strong national and local interest issue here and I am meeting the Secretary of State next week to urge him to act to protect local jobs here in Redditch.”
GKN has invested heavily in research and development expenditure – skills and engineering jobs, all which are badly needed in the UK.
“Melrose have a record of asset stripping companies they purchase for short-term gain,” added Mrs Maclean.
“They are not long-term investors. I accept that in recent years there has been a slight dip in the profit returns at GKN, but I have been assured there is a plan in place to turn this around.
“I will be asking the Secretary of State to review this takeover and ask whether Melrose would be willing to make the same commitments to its people development, the industrial strategy, the UK as a whole, our defence sector and the R&D that we need in the UK, as GKN have.
“Time is of the essence though, as we heard that another company bought by Melrose has recently shut down with the loss of 270 jobs putting into question their entire business model and strategy. I can’t believe this would be good for Redditch or for the country.”
