The company GKN may shut down its factory in Köping in 2026, local media reports.
At the facility, where nearly 500 employees work, four-wheel drive systems are manufactured.
On Wednesday, the employees were informed about the plans.
Corrie Raine, GKN's global communications manager, writes in an email to Bärgslagsbladet/Arboga Tidning that the company is exploring the possibilities of relocating production to locations outside Europe.
"We are therefore announcing that we are considering discontinuing production in Köping, and that we are now about to initiate negotiations with the trade unions at the factory", she writes.
