Johannesburg [South Africa], May 21: The National Union of Metalworkers of South Africa (NUMSA) on Tuesday voiced concern over reports that Japanese automaker Nissan may shut down its South African plant, warning the move could put more than 20,000 jobs at risk.
"NUMSA is planning to meet with the management of Nissan soon, and we hope to get clarity on the situation. Our union stands ready with our members to defend jobs in the sector," Irvin Jim, general secretary of NUMSA, said in a statement.
The union declined to comment further on the issue.
The concerns follow a Reuters report indicating that Nissan intends to close plants in South Africa, India, and Argentina over the next two years as part of a global restructuring plan that would reduce its manufacturing footprint from 17 plants to 10.
In response to local media inquiries, Nissan South Africa confirmed that it is "currently conducting a detailed assessment regarding the announced plant closures."
Nissan has operated its only South African production facility in Gauteng Province for nearly five decades. However, the brand did not feature among the top 10 best-selling automakers in South Africa in April, according to the National Association of Automobile Manufacturers of South Africa.
Industry experts suggest the potential closure reflects broader global challenges facing the automaker.
"I believe Nissan has a global concern, and South Africa is just a small issue. This is what I have been fearing for the motor industry in South Africa, and now it's happening. The consequences are too ghastly to mention," Mphuthumi Damane, an independent auto industry analyst, told Xinhua by phone on Tuesday.
Source: Xinhua News Agency
