BAe to close factory in Leicester

Almost 300 people are to lose their jobs after BAe Systems said it was closing a factory in Leicester.

The firm is shutting its Radar Road plant by autumn 2011, blaming the failure to win an armoured vehicle contract.

Bernie Hamilton, the Unite union's national officer for aerospace and shipbuilding, said the reasons for the closure included the government's decision to award the next generation of armoured vehicles to the UK subsidiary of US company, General Dynamics.

He said: "This is a body blow to the local Leicester economy and also to the future research and development skill base of the UK's defence industry.

'It will result in the UK losing advanced research technology and manufacturing capability for armoured vehicles and will mean that the UK will be dependent on companies from other nations in future for its armoured land vehicles for the army.

"We will work with the management to identify opportunities for the workers affected to be able to transfer to other businesses elsewhere within BAe Systems."