Delphi, the world's leading automotive parts supplier, plans to close its factory in Ceska Lipa, Czech Republic.
Delphi's factory mainly produces automotive wire harness products, and its major customers include BMW and Audi.
The report said that Delphi will close the Ceska Lipa plant in several steps and is expected to complete all closures by May 2011. It is expected that 1,400 workers will be laid off.
Reuters quoted Ladislav Belohlav, head of labor unions for the Delphi Ceska Lipa factory, as saying that Delphi’s intention to shut down the plant was to transfer production capacity to other low-cost countries.
According to Reuters, Delphi officially declined to comment.
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