Delphi plans to close Czech plant-union leader

PRAGUE Aug 23 (Reuters) - U.S. car parts maker Delphi plans to shut its Czech unit, laying off all 1,400 employees at its plant at Ceska Lipa, 90 km north of Prague, a trade union leader said on Monday.

The job cuts at the cable harnesses plant, whose clients included Germany's BMW (BMWG.DE) and Audi (part of Volkswagen (VOWG.DE)), are planned in several stages, with the shutdown to be completed by the end of May 2011.

"The reason is moving to cheaper locations," Ladislav Belohlav, union leader at the factory said.

Delphi press officials at the Czech unit and at the firm's Europe, Middle East and Africa headquarters were not immediately available for comment.

Delphi is looking into the opportunity to sell its shares in a public offering. [ID:nN2099444]

The Czech Republic is home to many foreign investors who control a majority of local industrial production centred on cars, electronics and steel.

Rising Czech living standards and costs have led to the movement of some lower value-added production to cheaper countries further to the east.

Foreign investment into the Czech Republic reached 53.35 billion crowns ($2.7 billion) in the first quarter of 2010, according to the central bank data. (Reporting by Robert Mueller; Writing by Jana Mlcochova; Editing by David Holmes) ($1=19.50 Czech Crown)