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| Peugeot plant to close in January | Peugeot plant to close in January |
| (10 minutes later) | |
| The Peugeot plant in Ryton, Warwickshire, will close in January 2007, it has been announced. | The Peugeot plant in Ryton, Warwickshire, will close in January 2007, it has been announced. |
| It had been expected that the plant, near Coventry, where the 206 is made, would close in the middle of next year. | It had been expected that the plant, near Coventry, where the 206 is made, would close in the middle of next year. |
| The company announced plans to close the factory in April, with the loss of up to 2,300 jobs. | The company announced plans to close the factory in April, with the loss of up to 2,300 jobs. |
| Unions have reacted angrily saying Peugeot had built up hope that work would be available until well into next year if people wanted it. | |
| 'Hopes dashed' | 'Hopes dashed' |
| An emergency meeting will be held tomorrow to discuss the details. | An emergency meeting will be held tomorrow to discuss the details. |
| "Peugeot built hopes up that there would be work well into next year if people wanted it," Des Osborne of the Transport and General Workers' Union said. | "Peugeot built hopes up that there would be work well into next year if people wanted it," Des Osborne of the Transport and General Workers' Union said. |
| "But they have dashed those hopes and, worse, denied our members the chance to look for work in the knowledge there was a reasonable income coming in. | "But they have dashed those hopes and, worse, denied our members the chance to look for work in the knowledge there was a reasonable income coming in. |
| "It is not the sort of pre-Christmas present anybody wants especially as the workforce has been loyal over many years. They deserve better," he added. | "It is not the sort of pre-Christmas present anybody wants especially as the workforce has been loyal over many years. They deserve better," he added. |
| 'Asked to leave' | 'Asked to leave' |
| In a statement Peugeot said almost a quarter of the remaining workforce had asked to leave the company during the past few weeks. | In a statement Peugeot said almost a quarter of the remaining workforce had asked to leave the company during the past few weeks. |
| "Since moving to one shift in August the company has received an increasing number of requests to leave from employees wishing to start new jobs and the rate of these requests is accelerating. | "Since moving to one shift in August the company has received an increasing number of requests to leave from employees wishing to start new jobs and the rate of these requests is accelerating. |
| "This situation has prompted the group to review the timing of the end of activity at Ryton," it said. | "This situation has prompted the group to review the timing of the end of activity at Ryton," it said. |
| Production has been reduced to 160 cars a day to provide enough flexibility for staff to leave when they wish, it added. | Production has been reduced to 160 cars a day to provide enough flexibility for staff to leave when they wish, it added. |
| The statement also said it had a £5m centre dedicated to helping Ryton staff with more than 6,000 pre-qualified job opportunities available. | The statement also said it had a £5m centre dedicated to helping Ryton staff with more than 6,000 pre-qualified job opportunities available. |
| High production costs | |
| In April, Jean Martin Folz, chief executive of Peugeot Citroen, said a study showed Ryton had high production and logistical costs leading the company to decide to move production to Slovakia. | |
| The news came as another large blow to the West Midlands car industry - nearly 6,000 jobs were lost last year at MG Rover in Longbridge, Birmingham. | |
| And in 2004, up to 1,000 jobs were lost in Coventry when Jaguar moved production to Birmingham. |