PARIS -- Europe's largest listed car parts maker Valeo on Thursday announced a restructuring plan for two sites in Spain and Portugal which would result in the loss of over 550 jobs.
At Arbrera in Spain, 406 jobs of the current 450 will go.
"The Arbrera site is not competitive in the current context where other manufacturers have delocalized their production to countries where net costs are less elevated," Valeo said in a statement.
At the second site, Santo Tirso in Portugal, 153 jobs will go out of the current 494 employees. Under the plan, the site will concentrate on manufacturing highly-diversified references of engine and interior wiring harness.
The restructuring plan for the two sites, both part of Valeo's electronics and systems division, will be presented at an extraordinary meeting of its European works council on June 25, Valeo said.
Jobs will first be shed through voluntary redundancies, it said.
Tough cost cutting has helped Valeo cushion its profits against a wobbly European car market. In the first quarter its net profit rose 10 percent to 22 million euros, though the rise was smaller than expected. In the first quarter the firm shut eight of its 140 industrial sites.
Shares in Valeo closed 6.05 percent higher at 27.89 in Paris on Thursday, boosted along with the rest of the auto sector by a stronger dollar.