BAE Systems plans to cut 105 jobs at Glascoed, Monmouthshire

The company makes munitions at Glascoed

Defence company BAE Systems is planning to cut 105 jobs at a munitions factory in Monmouthshire.

A total 620 people are currently employed at Glascoed. The firm said about 80% of the cuts will be contractor posts.

BAE blamed increased automation, as a result of a £50m investment, and reduced demand for ammunition from the Ministry of Defence (MoD).

It said the cuts were "vital" for the site to remain competitive.

Managing director Charlie Blakemore said: "We need to adapt to very challenging market conditions and further reduce our overheads to drive better value for our customers and increase our competitiveness in the export market.

"I know that this is difficult news for employees and we will do all we can to help them through this difficult period and mitigate the proposed job losses wherever possible."

Jeff Woods of the Unite union, said: "Today's news is a massive blow to the workforce at BAE Systems at Glascoed. It is totally unacceptable for workers to learn about potential job losses second hand through the press.

"Unite will be consulting with our members at Glascoed and at sites across the UK on the best way forward following today's announcement."

BAE has also proposed the closure of its Newcastle armoured vehicle site with the loss of 600 jobs.

In response to the announcements, Defence Secretary Phillip Hammond said the MoD's equipment programme would see £160bn worth of contracts awarded over the next 10 years.

Armoured vehicle site

"We have set out the steps we are taking to support industry, and are promoting exports, increasing opportunities for smaller firms and investing in new technology," said Mr Hammond.

The 1,000-acre site near Usk produces a range of munitions.

It started production in 1940 during World War II and the operation has about 700 buildings.

Rehana Azam, national officer of the GMB union, said: "BAE Systems have a highly experienced and skilled workforce and these job cuts are yet another blow to manufacturing.

"Representations are being made to MPs to see what can be done to retain skills within BAE Systems and in traditional industrial areas of the UK."

In 2008, the company signed a 15-year deal with the MoD to supply the UK armed forces with small arms and medium-calibre ammunition.

It also included mortar bombs, tank, artillery and naval gun shells, but not weapons such as guided missiles.

The contract safeguarded 1,700 jobs at three factories, including Glascoed.

The deal was initially worth about £2bn and the MoD hoped the contract would rise to a £3bn, depending on how much ammunition was ordered.