About 150 jobs look set to be lost at one of Colchester's best-known firms.

Paxman Diesels, which used to employ thousands at its plant in the New Town area of Colchester, today announced sweeping changes which would see just 100 workers left there.

Paxman Diesels - 150 job losses have been announced at The Hythe-based company Picture: ROB SAMBROOK

The firm currently employs about 250 staff.

Production of one type of engine will be moved from Colchester to Stockport later this year.

Talks are now under way with staff about the changes and the firm is hoping to keep the number of redundancies to a minimum.

No redundancy notices have yet been sent to workers.

But staff were left shocked and fearful after the announcement.

Steve Riley, network adminstrator, said: "I am disappointed. It wasn't a surprise but I was shocked."

Roger Buckingham, Paxman spokesman, said: "Jobs are at risk but we want to minimise the number of redundancies."

He added the timescale for the changes depended entirely on the result of talks with staff.

Mr Buckingham said there were no plans at the present time to close the site, though remaining staff will be concentrated in just one area of the sprawling premises.

At Colchester, there are currently 249 employees within the high-speed engine business, of which 67 are directly within the diesel service.

Although VP185 manufacture would transfer to Stockport, the diesel service function would continue to operate from the Colchester site, comprising Paxman spares and service as well as the engine overhaul facility for the Ruston and Paxman engine ranges.

Mr Buckingham said: "Following the proposed changes, it is anticipated that approximately 100 people would be employed at today's business levels.

"The proposals announced today are aimed at establishing the basis for a more competitive UK business and are driven by the need to balance capacity with market demand.

"With the recent developments in the world engine market, this commitment will ensure that the business is better positioned to compete more effectively and to build a more solid base for the future.

"These proposals will strengthen the British engine programme in the international market."."

Published Friday, February 7, 2003

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