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Nissan will not extend the contracts of 248 temporary workers at its British car factory, the Japanese automaker said on Thursday, as the industry struggles with reduced demand amid the coroanvirus outbreak.

Output at the northern English Sunderland plant was halted in mid-March and resumed at the start of the week but with only one line, which makes the Juke and Qashqai models, in operation.

(Also read: Spain says Nissan has decided to close its Barcelona plant, 3000 jobs at stake)

A second line, which builds Qashqai and the electric LEAF, will reopen on June 22, the firm said.

“Given current business conditions in Europe, we are facing a period of reduced volumes in our Sunderland plant," the firm said in a statement.

(Also read: Nissan warns UK plant 'unsustainable' without EU trade deal: Report)

"Unfortunately, therefore, we will not be extending the contracts of 248 temporary manufacturing staff at the plant."

The reduction means total staffing at the site will stand at 5,750 people.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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