The firm operates two factories, one in Swansea and another in Rotherham, which produce parts for Honda, Nissan and Toyota, among other car makers. It reportedly employees 458 people at the two plants – 251 in Rotherham and 207 in Swansea.

In a statement, the company said it is closing its UK manufacturing facilities in “response to continued changes in the global automotive sector, and a significant reduction in key UK customer demand”. Due to these changes, Toyoda Gosei said it does not foresee growth of its business in the UK.

The firm has informed employees of the proposal and will now enter a formal period of consultation with its employees regarding the proposed changes.

Restructuring of its global business is one part of Toyoda Gosei’s efforts to achieve sustainable growth into the future

The company said it has taken previous steps to reorganise its business in Europe, selling its shares in a production subsidiary for automotive parts in Germany in December 2019 and moving some of production to its main European manufacturing site, Toyoda Gosei Czech (TGCZ).

The company said it will continue to improve productivity and strengthen its European business with TGCZ in a central role.