ROYAL Ordnance has confirmed that job cuts are likely after announcing a review of the future of its Blackburn factory.

The firm has also stated that relocation of work done in the town to another site is a possibility.

Royal Ordnance, which employs 360 people, held a meeting with workers yesterday at the start of the review.

Although the firm said it was too early to say what the outcome would be it did confirm "it is likely that there will be some changes to the current level of employment."

"It is our firm intention to remain in Blackburn but no final decision has yet been made," said spokesman Andrew Jeacock.

He blamed the review on increasingly difficult market conditions.

"The electronics and fuzes business of Royal Ordnance faces a difficult challenge in a period of reduced defence spending and the opening up of the UK market to overseas competition.

"To have a prosperous future it is essential that the company reviews both its product portfolio and industrial base to improve its competitive position."

The outcome of the review is expected within the next nine months.

He said an in-depth review of the site and its products was about to get under way.

"Every facet of the business will be examined. This process will involve employee representatives."

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