LONDON (ShareCast) - (Sharecast News) - Chamberlin shares dropped after the castings and engineering group said its major customer planned to cancel all contracts before the end of January.
BorgWarner Turbo Systems will scrap the contracts from 22 January, Chamberlin said. Chamberlin shares fell 7% to 8.6p at 12:57 GMT.

On 23 November Chamberlin said a customer representing about 75% of its machine shop's output had brought forward a product change, leading to a change in supplier. It did not name BorgWarner as the customer at the time and said it would pursue a claim related to the early transition.

Chamberlin has suffered volatile demand in 2020 resulting from Brexit, Covid-19 and customer stockbuilding. It furloughed its machine shop workers after learning the customer told it about the decision.

"The board is reviewing the notification with its advisers and is evaluating the potential impact on the company," Chamberlin said on Wednesday. " A further announcement will be made in due course."

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