Royal Ordnance is to close its Faldingworth ammunition plant in Lincolnshire next year as part of a major restructuring which could also see it offload production and sign joint venture deals with European ammunition makers.
The closure of Faldingworth, which fills 20mm and 35mm shells, will take place next summer. The 57 staff have the option to move elsewhere in the firm, or to its Glascoed plant in South Wales, which will become the centre of ammunition filling, assembly and packing.
Royal Ordnance said the closure of Faldingworth would save it several million pounds. It has 14 sites and wants to cut overheads.
The shutdown takes place amid efforts by Royal Ordnance’s parent, British Aerospace, to negotiate collaboration deals or sell-offs with European rivals in order to reduce overcapacity.
Long-running talks on an ammunition joint venture with French ammunition firm SNPE were suspended this week. Royal Ordnance said no joint venture with SNPE could be signed while the French firm remained a state-owned company.