BAE cuts jobs and turns to US as aircraft business slows

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The former British Aerospace, which has made no secret of refocusing its business on the US arms industry, said it is closing the factory that makes the ageing Nimrod maritime patrol plane with the loss of 630 jobs in Cheshire.

A further 486 jobs are going around the UK as BAE admitted work on other aircraft such as the Harrier, the Tornado and the Hawk is slowing.

The cuts come after BAE's announcement in May - on the day of the Government's decision to pull out of Basra, southern Iraq - that it was cutting 500 jobs supporting and supplying armaments and trucks to the British Army.

A spokesman for the company said today: "Despite strenuous efforts to achieve further Nimrod production work there has been none forthcoming. It is intended that there will be a phased run-down of the site in line with the production programme."

BAE said workers have been aware that the Nimrod - in RAF service since the 1960s - was being wound down ahead of a proposed programme closure in 2012.

The other job losses - mainly in the north but including 111 at Farnborough - are related to slowing demand for upgrade work and maintenance on the Tornado fighter, the Harrier Jump Jet and the Hawk aircraft as well as on a contract with Airbus, the European manufacturer in which BAE used to have a stake.

"We have to ensure we are the right size and shape to remain competitive and meet our customers' requirements in the future," said Kevin Taylor, BAE's military air chief.

Lancashire Tory MP Nigel Evans said the Airbus-linked jobs are being lost to overseas locations. "This should send a warning signal to the Government that more work needs to be done to keep manufacturing in the UK," he said.