Switch Mobility UK to Close Sherburn Plant: Impact on Bus Production

New Delhi, Mar 26 (PTI) Commercial vehicle maker Ashok Leyland on Wednesday said the board of its arm Switch Mobility Ltd, UK has approved commencement of consultation process with employees for a potential cessation of manufacturing and assembly activities at its Sherburn facility.

Switch Mobility Ltd, UK is a stepdown subsidiary of Ashok Leyland. It is a manufacturer of electric buses having presence across the UK and Europe.

"In the wake of continuing general economic uncertainty within the overall bus manufacturing sector in the UK and consequent inability to derive the benefits of scale, the Board of Directors of Switch UK today approved commencement of consultation process with the employees which could potentially lead to cessation of its manufacturing and assembly activities at its Sherburn facility," Ashok Leyland said in a regulatory filing.

Switch UK has no plans to exit the UK market. It will execute and complete all the orders on hand and will continue to provide aftermarket and service support from two other facilities in Rotherham and Thurrock for the existing vehicle parc, the filing added.

In a separate filing, Ashok Leyland refuted reports stating that it might be close to acquiring the promoter's stake in SML Isuzu.

"The company would like to outrightly deny this news as factually incorrect," Ashok Leyland said.