Yahoo Finance Brexit-backing billionaire moves production of 4x4s from UK to France
Ineos Automotive, owned by billionaire Brexit backer Jim Ratcliffe, announced it will build its first 4x4 vehicle in France, which confirms that its plans to build a car manufacturing factory in Wales have officially been abandoned.
The company, a subsidiary of chemical giant Ineos Group, said it has acquired a manufacturing facility at Hambach, France from Mercedes-Benz and will start to build its Grenadier 4x4 there in late 2021.
It described Hambach as “the ideal facility for production of the Grenadier,” with a “highly experienced and capable workforce” and “an excellent track record amongst Mercedes plants for the quality of its output” which “recently benefited from a major investment to enable the production of larger vehicles.”
It added that the the site’s location on the French-German border, 200 kilometres from Stuttgart, gives it access to supply chains, automotive talent and target markets.
Manufacturing at Hambach ensures that Ineos remains on track to meet its plans to deliver the Grenadier to customers in early 2022, the firm said.
READ MORE: Ineos teams up with Hyundai to develop hydrogen fuelled sports SUV
Back in September 2019, Ineos had confirmed that the Grenadier will be built in a bespoke new manufacturing facility on a greenfield site in Bridgend, South Wales.
It said this would create 200 jobs initially, and up to 500 in the long term. It announced site development was now under way to support planned start of production in 2021.
UK prime minister Boris Johnson at the time had reacted to the news on Twitter, stating the plant was “a vote of confidence in UK expertise, making sure we keep our status as a pioneer in new vehicle technologies.”
This is sure to come as a blow to Wales. According to some reports, the Welsh government has spent around £5m ($6.7m) supporting the project.
In a report from July about the project being abandoned, the BBC had quoted Welsh economy minister Ken Skates as saying: "We have impressed on the company in no uncertain terms the importance of honouring its commitment to Wales and to deliver on its promise to build a British icon here in Britain.”
"I have told the CEO that abandoning Bridgend at this late stage, after so much effort and money has been invested in preparing the site, would be a terrible decision for Wales and the UK,” he added.
Meanwhile the owner of Ineos, Ratcliffe, was crowned as the fifth richest man in 2020 in Britain by the Sunday Times, with a net worth of £12.15bn. Earlier this year, he changed his tax domicile from Hampshire to Monaco. It has been estimated that the move will save him £4bn in tax payments.
Last month it was reported that Ratcliffe partnered with Hyundai Motor Company (HYMTF) in an attempt to boost hydrogen fuel cell vehicles.
Ineos said it will work together with the Korean carmaker to explore the use of the Hyundai fuel cell system in the Grenadier.
WATCH: What are freeports?
