The British car parts maker B&am’s UK division said it is shutting its UK branch, after the Brexit vote.
The UK’s Government’s Department for Business, Innovation and Skills said it was terminating the contract with the company after it found the company had no ability to keep up with the demand for its products.
The company had already closed down its headquarters in the UK in June, but it has been seeking to expand to other parts of the world.
The closure comes after B&Am’s UK head office, B&AM Global, closed in May.
B&A’s UK branch was established in 1996, with its UK base based in the United Kingdom and its European base in France.
It is based in Bexley, Surrey.
In a statement, the company said it has “continued to look for a suitable location for its UK operations”.
“While we have enjoyed many successful years in the US and abroad, our UK team has been unable to keep pace with the growing demand for our products and we are currently looking for a new home,” the statement said.
B &B Global also said it would offer its staff a redundancy package, which it said will include pay rises of up to £1,000 a week.
It also said that its US and European headquarters had been closed and the business had no further plans to open a UK branch.
In the past, B &am’s parent company, B.E.H.F., said it had no plans to close its UK operation.
“The UK automotive industry is still a strong and vibrant part of the UK economy and B&ams global operations remain the largest in the country,” the company’s managing director, Andrew Wills, said in a statement.
“We are committed to the UK automotive sector and the automotive sector in general and will continue to support it.”
B&s UK said it will provide staff with a redundancy scheme and pay rises.
It said that it would not be making any further announcements at this time.
“B&am has been a key partner in the industry for many years and we look forward to continuing to build our strong global footprint and grow our business through the acquisition of companies,” it said.
The Government said it planned to invest more than £400m in Britain’s automotive sector over the next four years.
BAM has about 1,500 employees in the U.K. and its U.S. headquarters are in Los Angeles.
It employs about 5,000 people in the world, with about 2,500 in the region.
Bams UK also has offices in the Netherlands, Belgium, Germany and Brazil.
In addition to manufacturing parts for vehicles, BAM also makes automotive accessories, electronics and electronics accessories.
The British government said it expects to invest up to $10bn ($15.6bn) over the coming four years to support its manufacturing industry and boost jobs.