JOB losses are to hit Leyland's Centurion Way after a merger between two neighbouring engineering firms.

Specialist engineering companies Drinkwater Engineering and The Vehicle Application Centre (TVAC), merged at the end of last week after talks lasting for six months.

Now 14 job losses have been announced.

Oliver Drinkwater, former managing director of Drinkwater, has become director of the new formed company although both firms will continue trading under their own names.

Mr Drinkwater said: "Unfortunately we have had to cut costs which is not nice. The new company needs the best financial start it can get.

"We have been neighbours for around seven years, and after talking we agreed it was objectively silly to be situated side by side without cooperating. So I talked with Gary Smith of TVAC, and we looked at areas we could cooperate on for six months. We decided that the best way forward was to merge.

"We hope that by coming together we can become the market leaders."

David Borrow, South Ribble MP, said: "I know there are shortages of highly skilled engineers in the Leyland area, and I would hope other companies will pick up the staff. "