Brazilian precision tube producer Metalurgica de Tubos de Precisao (MTP) closed its doors and laid off 770 workers in the city of Guarulhos, in the state of Sao Paulo, union sources said on Tuesday.
MTP’s shutdown is partially attributed to the nation’s automotive industry, which is facing a severe crisis with the closing of 12,400 jobs after production slumped 15.3 percent.
About 68 percent of production of the nation’s auto parts segment is aimed for the automotive industry, for which MTP was a supplier. Last year, the auto parts segment fired about 19,000 workers.
“Last year was one the worst years for the segment,” Paulo Butori, president at the nation’s autoparts association said. “We’re feeling a wave of decreases [in jobs] and it continues in January,” he said.
Mercedes-Benz laid off 260 wokers at its Sao Bernarndo do Campo plant, and Volkswagen is planning a voluntary retirement plan, which could affect 2,100 employees.
Local reports said MTP also faced several “management problems.”