Troubled telecom giant Marconi is selling its optical components arm in a £19m deal - and it could mean more job losses in Chelmsford.

Marconi is off-loading the division to Bookham Technology in return for a 9.9 per cent stake in the fibre optics group, valuing the deal at £19.7m.

The division, which makes optical components such as transmitters and lasers, is based in Caswell, Northamptonshire, but also has workers in Chelmsford and employs a total of 500 people.

But a spokesman for Marconi today said she could not yet comment on how many Chelmsford jobs would be affected.

Chief Executive Mike Parton said the agreement was part of the group's strategy of disposing of non-core businesses.

A spokesperson for Marconi said: "The sale to Bookham is subject to a number of approvals and there will be a period of consultation with Marconi Optical Components staff before the transaction closes early in 2002."

Mick Elliott, senior Manufacturing Science and Finance Union representative at Marconi Mobile, New Street, Chelmsford said: "I am not sure whether the workers for the opticals arm are based at Marconi Applied Technologies in Waterhouse Lane or at the former Marconi Research base, which is now British Aerospace, in Great Baddow. Either way, the 500 people that are employed at Marconi Mobile in New Street are safe."

Mr Elliott added that Marconi Mobile's planned move to a new site at New Street has had to be put on hold because of the company's financial difficulties.

The Chelmsford sites alone have suffered 175 job losses this year with the threat of 600 further losses at the UK bases still hanging over workers heads

Published Monday December 17, 2001