Cummins has abandoned plans to build a new facility at Ainley Top.
The manufacturing company made the announcement at 5.45pm today.
Instead it plans to renew and upgrade its existing plant at St Andrew's Road.
A statement describes the decision as 'difficult'.
It says: The key contributing factors in arriving at this difficult decision include
- Challenging market conditions, which have resulted in declining sales in Cummins international markets
- Global demand in power generation, mining, marine, oil and gas markets continue to remain very weak
- The costs, complexity and time related to the proposed Ainley Top development have proved to be considerably higher than earlier forecasted
Where the factory would have been at Ainley Top
The plans, for a new factory in green belt land, were submitted to Calderdale Council in March. 400 jobs were set to move from the St Andrew's Road site.
Cummins said at the time it had amended its original proposals for a 18,600sq m plant after feedback from concerned residents.
A Cummins spokesman said today: "Cummins appreciates the support from both Kirklees and Calderdale councils in assessing the Ainley top manufacturing facility planning application and continue to remain committed to Huddersfield where Cummins employ over 1,000 people.
"Further announcements will be made by Cummins Turbo Technologies in the future on the planned refurbishment and upgrade to the St Andrew’s Road site."
The spokesperson admitted Brexit had an effect on the decision.
But he said the uncertainty about the Eu referendum had been around for 18 months.
He said: "The number one factor in pulling out of this new facility was the market weakening in a lot of areas.
"If Brexit was that much of an issue then we would not be investing in St Andrew's Road."
