THE American owners of Ingersoll Rand have announced plans to close their Swan Lane factory in Hindley Green by the end of the year -- with the potential loss of 106 jobs.

Ingersoll Rand, which manufactures percussive tools, grinders and hoists at the plant, plans to transfer all the production from the factory to other locations in the world.

The company said that the proposal was part of its commitment to reduce over capacity worldwide and so remain strong and competitive in global markets.

A company spokesman said: "This is a difficult time and we will keep everyone informed about the progress of talks with the unions during the coming weeks.

"The company recognises the commitment and support of the Swan Lane workforce over many years and will do its utmost to provide them with effective support."

Leigh MP Andy Burnham said that he planned to meet with trade unions this week or early next week to explore all the possible options to save as many jobs as possible.

Mr Burnham said: "My main concern is for those people and their families who could be losing their jobs. We need to ensure that they are given the best possible support, which includes retraining."