MORE than a hundred jobs could go at a munitions factory near Usk, BAE Systems said this morning.

The company said it is beginning a consultation with trade unions on potential job losses at its UK land systems business.

The firm said that up to 105 redundancies are proposed at the Glascoed munitions factory, near Usk, which currently employs 620 people.

Around 80 per cent are likely to be contractor posts.

The firm said that the proposals come after the Ministry of Defence reduced the volume of ammunition it requires. It said the business is "delivering major efficiency improvements."

Increased automation at Glascoed as the result of a £50 million "site transformation programme," and reduced demand for ammunition from the UK MoD meant that the cuts were vital if BAE was to remain competitive, it added.

A total of 620 jobs could be lost across the UK.

BAE Managing Director Charlie Blakemore commented: “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.”