BAE factory closure to cost 260 jobs

1st Jul 2010 14:06

A lack of orders for military vehicles has forced BAE Systems to shut down its factory in Leicester, putting 260 staff out of work.The company has said other vehicle factories in Newcastle, Telford and Wolverhampton will stay open, although they'll need more deals with the Ministry of Defence to keep going.Europe's biggest defence firm employs 500 in Newcastle where they're building 60 Terrier armoured tractors, enough work until 2014.Another 200 people at the Telford plant will maintain responsibility for maintaining the Army's existing fleet of vehicles.BAE last year stopped work at factories in Leeds and Guildford as part of a move to shrink its armoured vehicle business, costing 590 people their jobs.Today's news comes just a few months after the UK government handed a £4bn armoured vehicle contract to US defence giant General Dynamics (GD).The Americans say 80% of the work to make at least 750 Future Rapid Effect System (FRES) vehicles will be completed in Britain, safeguarding or creating around 10,500 jobs here.