Ford's Welsh engine plant to lose JLR business in 2020

LONDON (Reuters) - Jaguar Land Rover (JLR) will stop sourcing petrol engines from Ford's plant in Bridgend, Wales, after ending its current contract earlier than expected in 2020, creating uncertainty over around 750 jobs.

"We have informed our unions that Jaguar Land Rover intends to end our petrol engine supply arrangement slightly earlier than expected in late 2020," Ford said in a statement.

"Given our long-established and successful relationship in the delivery of world-class engines, this is disappointing news for the Ford Bridgend Engine Plant."

JLR is ending the long-standing relationship in September 2020, three months earlier than planned, a source close to the arrangements said.

Around 750 workers, about half of the plant's total, are dedicated to JLR production, the source said.

Ford said it would "continue to look at other high technology opportunities for Bridgend in the future."

JLR, owned by India's Tata Motors, opened a new engine plant in England's West Midlands in 2014, and in 2015 announced a plan to double its size, taking total investment to about 1 billion pounds ($1.3 billion).

The company said that in line with its contract it had served the required three years notice to Ford for the supply of the 6 and 8 cylinder petrol engines from its Bridgend plant.

"Ford has been, and remains, an important strategic supplier to Jaguar Land Rover under an agreement which was negotiated to support our business until the end of the decade," it said.

($1 = 0.7475 pounds)

(Reporting by Paul Sandle; Editing by Kate Holton and Mark Potter)