Toyoda Gosei UK Ltd. (TGUK) has informed its employees of a proposal to close its business in the UK.
Toyoda Gosei UK, which was founded in 1999, employs 458 staff in Rotherham and Swansea.
In a statement, the company said: "TGUK will now enter a formal period of consultation with its employees regarding the proposed changes. The proposal is in response to continued changes in the global automotive sector, and a significant reduction in key UK customer demand.
"Due to these changes, Toyoda Gosei does not foresee growth of its business there and has decided to make this proposal.
The statement added: "Restructuring of its global business is one part of Toyoda Gosei’s efforts to achieve sustainable growth into the future.
"The company has taken previous steps to reorganise its business in Europe, selling its shares in a production subsidiary for automotive parts in Germany in December 2019 and moving some of the production to its main European manufacturing site, Toyoda Gosei Czech, s.r.o.
"It will continue to improve productivity and strengthen its European business with TGCZ in a central role.
"Toyoda Gosei will respond swiftly and flexibly to the accelerating changes in the business environment with the aim of achieving sustainable growth into the future."