SEVENTY jobs are to go after BAE Systems decided to close its historic Chorley munitions factory.

The defence and aerospace company made the announcement after a cost review and said the Chorley site was "no longer economically viable". But unions have blasted the decision.

The Royal Ordnance factory, which manufactures explosives and ammunition, employs 200.

But 130 non-manufacturing workers, involved in engineering and support roles, are to keep their jobs and be relocated elsewhere in the area.

The Euxton Lane operation will close by the end of 2006.

BAE is also closing its Bridgwater site in Somerset, also part of its munitions business, as part of the review.

It said consultation with employee representatives would start immediately and every effort would be made to mitigate job losses.

Steve Rowbotham, managing director of land systems munitions, said: "We regret having to reach this decision, and recognise the impact it will have on our employees and the community.

"We will work very diligently to mitigate the impact of these losses and will ensure the process is handled professionally and sensitively.

"Additionally, we appreciate all the support given by the local community over the years."

Ron Ralph, regional officer for manufacturing union Amicus, said: "This is another disaster for manufacturing in Chorley. We will be seeking more details about this closure during the consultation period."

Richard Hardy of Prospect, the union for defence professionals, said the decision was "premature at best" and he was consulting members about industrial action.

He said: "Our members are very worried about their jobs and pensions, but they are also angry that promises made a few years ago are being broken. At a strategic level we are concerned about the ability of the UK to meet its own defence requirements internally.

"It is particularly worrying that BAE Systems has just invested massively in US munitions production."

Chorley MP Lyndsay Hoyle, said: "I am appalled by the decision and I don't think it is in the best interests of anybody.

"Our soldiers trust British-made ammunition. What concerns me is where the Ministry of Defence is going to get it from in the future.

Is it going to go abroad like everything else?"