The crisis over the future of Rover’s Longbridge plant has triggered the postponement or cancellation of up to 35,302 sq m (380,000 sq ft) of component suppliers’ long-term requirements for the west midlands.
Rover’s current problems also mean that its plans for an automotive supplier park on up to 4.05ha (10 acres) of the 161ha (400 acre) Longbridge site are in doubt.
Requirements which have stalled or been put on hold include: Magna Exteriors search for up to 18,580 sq m (200,000 sq ft); Lear Corporation’s requirement for 13,006 sq m (140,000 sq ft); and US-owned Johnson Controls’ plans for a 3,716 sq m (40,000 sq ft) research and development centre.
Suppliers’ caution reflects Rover parent BMW’s widely publicised doubts about investing at Longbridge in facilities for the production of its new medium-size car range.
Robert Lewin of Gerald Eve, which is advising Magna, was not available for comment but the bumper and headlight system maker is thought to have put its search for a site on hold following the Rover crisis.
Lear’s requirement – for its interior systems division – has certainly has been influenced by the controversy over Longbridge, according to Paul Harknett of Brown Harknett, which is advising Lear. However, in the meantime, Lear has taken a lease on a further 3,716 sq m (40,000 sq ft), close to its original factory in Tipton.
Tim Suffield, head of Fuller Peiser’s industrial team in Birmingham, acknowledged the concern: “Undoubtedly the uncertainties faced by Longbridge are having an affect on some sectors of the market but we are still seeing other deals done,”
Suffield advised headlight manufacturer Adac, which supplies other car manufacturers besides Rover and recently acquired 3,716 sq m (40,000 sq ft) on Slough Estates Kings Norton Business Centre, south of Birmingham. Fuller Peiser advised Adac.
EGi News 11/02/99
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