BAE Systems plans to cut 620 across UK

BAE Systems is planning to axe more than 600 jobs and close its Newcastle factory where tanks were made for World War I.

Subject to consultation, some 620 jobs could be lost at sites across the UK, including up to 330 at Newcastle.

About 200 jobs will be lost at sites in its munitions business, including Radway Green near Crewe and Glascoed, near Pontypool and 97 in Washington.

Up to 10 jobs may go at the firm's head office in Farnborough, Hampshire.

The firm said the proposals, now under consultation, followed major efficiency improvements and reductions in orders required by the Ministry of Defence.

BAE said the proposal to close the old Vickers site in Newcastle at the end of 2013 followed a business review that concluded that there was no prospect of new UK armoured vehicle manufacturing work once production of the Terrier ends.

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."

The efficiency improvements stem from a £200m five-year transformation programme launched following a 15-year partnering agreement signed with the MoD in 2008.

The company has already announced the consolidation of the rest of its UK armoured vehicle support work into its Telford facility in Shropshire.