Job losses at Caterpillar factory in Desford

Caterpillar said the full number of redundancies was not known

Some 175 agency jobs have been lost at a Leicestershire factory, according to the Unite union.

Caterpillar, which makes machines for the construction industry, said it did not have full job loss numbers yet but did not rule out further losses.

Unite, which represents permanent staff at the assembly plant in Desford, said it hoped to avoid compulsory staff redundancies.

It also said it would be holding talks with the US-based company next week.

Tom Sawyer from Unite said: "It's a very worrying situation... but due to the strong relationship that Unite has with the company we hope that compulsory redundancies can be avoided."

Jim Duggan from Caterpillar said: "After a good start to 2012 projected production volumes for our products are lower than we previously expected.

"We are taking a number of actions at Caterpillar Desford in order to adjust production to match demand and realign our business accordingly.

"In addition to the actions related to the agency workforce, we have also communicated to employees about a voluntary severance program. As such, at this time, we do not have a total figure for the reduction in workforce."

The world's largest maker of heavy equipment said it remained very positive about the long term prospects for growth.

In December Caterpillar announced an investment of £50m in its two UK plants, in Desford and Stockton, which it said would help nearly double the company's capacity for building diggers.