Global automotive parts supplier Marelli Corporation, formed following the merger of Japan’s Calsonic Kansei Corporation and Italy’s Magneti Marelli, has announced plans to reorganise its production bases in Japan, which will result in company ceasing production within its Calsonic Kansei Tochigi Corporation Tochigi Plant and Sano Plant District 1; Calsonic Kansei Utsunomiya Corporation; and Calsonic Kansei Yamagata Corporation operations.
On September 9, 2019, Calsonic Kansei Corporation announced that it would change its name to ‘Marelli Corporation’, while its Italian business, Magneti Marelli S.p.A, will be renamed ‘Marelli Europe S.p.A’ as of October. Following this, the names of its major affiliate companies will also be changed to Marelli. The changes reflect the company’s €6.2 billion takeover of Magneti Marelli earlier this year, creating the world’s seventh-largest global independent automotive supplier.
The closures are said to form part of the group’s ongoing strategy, expected to ensure its operations are structured in a way that can best respond to the significant changes within the global and domestic automotive industry. Following a review, the company stated that there are no viable alternatives to these plans.
Marelli added that it is working to strengthen its position so that it can compete as a global Tier 1 supplier. To do this, it is focused on growing its business through customer and product diversification, cost leadership, the development of a world-class product portfolio and targeted technology leadership.
The company plans to cease operations at Calsonic Kansei Tochigi Corporation Tochigi Plant and Sano Plant District 1, which among other parts produce heat exchangers and climate control systems, at the end of February 2020. Calsonic Kansei Utsunomiya Corporation, which produces air-conditioning compressors, will follow at the end of September 2020 and Calsonic Kansei Yamagata Corporation – also a producer of air-conditioning at the end of October 2020.
It was stated that Marelli will transfer, as appropriate, production at these plants to other plants in the group and provide as much support as possible to the plant employees, enabling them to be moved to group companies in principal. In total, the affected plants employ 644 staff.