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Chinese components blow will hit region's industry


A West Midlands firm which manufactures a prominent component for a famous ‘British icon’ has expressed its dismay following news the contract will be discontinued in the matter of weeks.

James Marketing, based in Kenilworth, has been told the contract to supply orange taxi sign lenses for black cab company LTI, will be discontinued after July following confirmation from the cab company that it intends to scale down its UK operation.

Barrie James, owner of Sunshine Close-based James Marketing, has been supplying the components to the cab firm for around 20 years but this week Mr James said he was appalled at the way LTI were ceasing the contract with little notice.

Mr James, whose company manufactures around 2,000 sign lenses for LTI each year, said: “LTI’s decision is not going to send us under, it is not the loss of business that annoys me and the way the contact ended.

“What really gripes me more is that British taxpayers’ money is being used as development aid to China. My money is essentially being used to support people who will produce what I produced.”

LTI, which in 2008 celebrated 60 years of taxi manufacturing in Coventry, is making major changes to its UK operation which will hit in the supply chain.

The changes will affect the manufacture of the TX4 taxis and the material supply of components in the UK facility.

Despite confirming that the assembly of the TX4 would remain at its plant in Holyhead Road, Coventry, component parts for taxis will be supplied by Shanghai Maple in CKD kits (Complete Knock Down kits).

BIW cabs and chassis will also be supplied by Shanghai Maple in China as a result of the significant shake-up.

In an email to James Marketing, David O’Callaghan, Buyer for LTI Vehicles Ltd, stated: “After a lengthy consultation period with its stakeholders LTI Vehicles Limited have decided to scale down the size of its UK operations.

“This decision has been made in order to reverse a sustained period of negative profitability over the past two years.

“The changes that will be implemented will allow us to benefit from lower cost UK operation overheads and component supply whilst keeping the manufacture of a British icon in Britain.”

But reacting to the news, Mr James and UKIP’s transport spokesman Mike Nattrass MEP, said LTI’s decision to scale down its UK operation would affect component companies in the supply chain.

Mr James said: “The way that LTI has dealt with this is just very shabby. The very signs lens that I make are all in LTI’s adverts. It is just like rubbing salt into the wound.

“In the email I received from LTI there was not a sign of remorse and no recognition of the service we have provided in the past.”

West Midlands MEP Mike Nattrass said: “This is devastating news for those component companies in this country which supply LTI with parts. I also recognise the point about UK tax being used via the EU to fund manufacturing overseas closing UK industry.

“Coventry is famous the world over for the manufacture of the black cab – now components, chassis and other parts will be supplied by China.

"Companies in the UK, such as James Marketing, will be affected by this and LTI’s announcement is bad for the region’s car industry in general.”

 

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