Liverpool-based Magna Merplas, which supplied components to Jaguar Land Rover’s Halewood plant, is to cut jobs after the car manufacturer awarded a contract to a rival firm.

Plastic mouldings company Magna Merplas provides the bumpers for JLR’s Halewood-built Range Rover Evoque and was awarded a five-year supply contract for the plant’s new Land Rover Discovery Sport model due to go into production later this year. Both contracts have now been withdrawn.

Although Magna Merplas has won new business from another customer, it is anticipated that this will not be a full replacement for the work it has lost.

In a statement, JLR said that it regularly evaluates its supply chain to “ensure that it delivers the level of quality and customer service required to exceed customer expectations”.

Following a review of its exterior production suppliers, the company has made a strategic decision to consolidate the supply of bumpers and spoilers for its entire model range to a leading global supplier that will be investing in UK production to support our long-term growth ambitions.

“This will result in the establishment of a brand-new high-tech facility in the North West, bringing with it significant investment in the region. We have given Magna Merplas as much notice as possible regarding the cessation of our contract with them.

“JLR remains committed to sourcing from the UK where possible. About 50% of our components by spend come from the UK, and we support 190,000 jobs in the UK supply chain.”