Kostal plans £4m upgrade

Kostal is planning to invest around £4 million in new equipment to boost competitiveness at its South Yorkshire plant after receiving grants worth £255,000 from regional development agency Yorkshire Forward.

Tuesday, 11th September 2007, 12:59 pm
Updated Monday, 17th September 2007, 8:54 am

Yorkshire Forward’s cash will help to secure the long term future of the German-owned car components manufacturer’s Goldthorpe plant and the jobs of its 100-strong workforce.

It will help Kostal to develop new components for cars including switches for the dashboards of Range Rovers and to control electric windows on Volvos as well as a driver’s console that will control the gearshift, brakes and other functions on Jaguars.

And, it will help Kostal UK to compete with other suppliers based in China, Mexico and Eastern Europe.

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Kostal began making automotive switches in Goldthorpe in 1990 and has expanded into supplying a range of electromechanical components for car makers including Ford, Volvo, Jaguar, Land Rover and BMW and companies such as Siemens VDO, Johnson Controls and Intier.

Florian Zoller, finance and administration manager at Kostal UK, said: “This support is key to us, not only from a financial, but also from a motivational point of view. The grant boosted morale on site, as this has enabled Kostal to secure its long-term future for its plant in Goldthorpe.

Alex McWhirter of Yorkshire Forward said: “Kostal is an outstanding manufacturing company located in our region.

“The automotive industry is very competitive and as a direct result of this Kostal has embarked upon a substantial programme of investment ensuring that the company remains competitive on an international scale.

“We are pleased to support the company’s investment programme to maintain and improve its competitive position and ensure that jobs at the Goldthorpe site are safeguarded.”