Emergency Question: Bridgend Engine Plant

Part of the debate – in the Senedd at 2:05 pm on 15 January 2019.

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Photo of Ken Skates Ken Skates Labour 2:05, 15 January 2019

Can I thank Suzy Davies for her questions? There are a number of important points and potential products, particularly powertrains, that could be considered in the years to come for the Bridgend site. First of all, in terms of conditions that are attached to support from Welsh Government, of course, the Dragon engine was brought to Bridgend as a consequence of support offered by the Welsh Government, and conditions attached to that support in terms of the security of work for five years minimum will stand. The Dragon engine actually is a safe and secure engine because it can be hybridised. Within the new product cycle that Ford are looking at, it's hybridisation rather than a complete move immediately to full electrification of powertrains that would be their priority. That's why I think the Dragon engine actually is probably one of the most attractive products that they currently produce, to hybridise for a global market.

What we want to do is ensure that hybridisation of the Dragon engine comes first, before other powertrains, and that that work is carried out in Bridgend. There is, of course, potential for increasing capacity with regard to the Dragon engine. At the moment, about 125,000 units are being manufactured. It could increase to 250,000 units. There is a question mark over Ford's operations in Russia. If Russia were to be taken out of the equation, then that would clearly give a huge opportunity to increase production of the Dragon engine at the Bridgend plant. These are all factors that are currently in motion that we are monitoring and that we are clearly trying to influence with a view to making sure that we get the best outcome for Bridgend.

The Member rightly raised the question of what support can be given to workers affected by any decision by a company to reduce head-count numbers. In terms of the support that we can offer, clearly we would seek to deploy the same sort of support that was offered to Tata workers, primarily through our employability plan and with a special regard to the new Working Wales suite of interventions to make sure that people can be trained up with new skills if necessary to get them straight back into work or signposted to immediate opportunities already within the sector that they are specialists in.

The Member also raised perhaps the most important potential project for the site—it's actually project Seagull. 'Grenadier' is the product name that has been attached to the rugged 4x4 off-roader. This is a potential investment by Ineos. Welsh Government has worked tirelessly in collaboration with Ford and Ineos to ensure that we are best placed to secure that investment. If we bring production of that vehicle to Bridgend, it will provide work for hundreds upon hundreds of people and potentially thousands in the supply chain. A decision will be made next month. The big question is whether Wales can win that contract ahead of one other site in Europe as we leave the EU. It will perhaps be the biggest test of whether the Welsh economy can withstand the challenge of Brexit that we will face in the coming months ahead.