THE planned British withdrawal from Afghanistan in 2014 is 'a factor' in the decision to axe more than a hundred jobs at a munitions factory in Gwent.

BAE Systems yesterday said that up to 105 jobs could go at the Glascoed munitions factory, near Usk.

The company has begun a 90-day consultation on job losses at its UK land systems business which could see 620 jobs lost across the UK.

Sources say that Britain's planned withdrawal from Afghanistan in 2014 is a factor in the decision.

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

Workers were stunned by the announcement, according to Unite the Union's regional officer Jeff Woods who said the union doesn't want to see any compulsory redundancies.

He said: "The way it has been handled and announced has sent shockwaves throughout the plant."

Around 80 per cent of the Glascoed job losses are likely to be contractor posts.

The 90-day consultation at the plant, which makes mortar ammunition and other items, is likely to end in August with job cuts possibly starting then.

It is understood that the cuts will be phased in, rather than in one go.

BAE managing director Charlie Blakemore said: "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."

David Davies, MP for Monmouth, said it was extremely disappointing news, but that he had mixed emotions and was relieved Britain was pulling out of Afghanistan.

He said the cuts come partly as a result of the MoD's need to cut costs, and the fact the British Army won't need as much ammunition following the pullout.

"This [Britain's withdrawal] is something that many people will see as a positive thing but its not positive for people that have lost their jobs," he said."

It does mean that we have an obligation to help those who lose their jobs as a result."

Glascoed takes empty ammunition bodies from BAE's plant from Washington in the North of England and fills them with explosive, making tank rounds, motar bombs and other items.

EDITORIAL COMMENT: Job losses hit hard

THE SPECTRE of 105 job losses at defence giant BAE Systems’ Monmouthshire plant is a real blow for the area and for our manufacturing industry.

Sadly, the cuts are partly in response to the otherwise welcome news that our soldiers will in the next few years be withdrawing from Afghanistan.

The Glascoed munitions manufacturer says around 80 per cent of the job losses will be contractors jobs. That in no way lessens the effect on either the individual workers involved or the local economy.

And it is vital that everything that can be done should be done to help those losing their jobs find alternative work, if only to keep such a skilled workforce here in Wales.

The job losses are also partly down to the company investing heavily in increasing the use of automation at the Glascoed plant.

But the company, which has also announced it is planning to close its historic tank building base in the north east of England, has also said it is facing lower orders for ammunition from the Ministry of Defence.

And with the withdrawal of troops from Afghanistan ever closer the chances are the orders will continue to fall off.

Across the country BAE is to lose in the region of 620 jobs saying the job losses are need for the company to remain competitive in a difficult export market.