Vector Aerospace says AgustaWestland is to take its repair activity in-house at its Yeovil site by March 2011. This work is currently undertaken by Vector Aerospace at its Almondbank, Perthsire site. There will be staff cuts as a result of the decision.

The company also plans to close its Croydon facility because of the Ministry of Defence’s projected requirements for engines for its VC10 aeroplanes.

Negotiator Jim Cooper said the company has announced a voluntary redundancy scheme across its three sites at Almondbank, Croydon and Fleetlands in Gosport. It also intends to close its final salary pension scheme in 2012.

“The announcement is a blow. It shows clearly how cuts to the public sector filter through to the private sector – at a time when the government has pinned its hopes on a recovery spearheaded by the private sector. The defence sector is leaching skills when the UK needs skilled workers more than ever.

“The decision will have a disportionate impact on Scottish industry and must throw the future of Almondbank into serious doubt. The cuts may leave it without a long-term future,” said Cooper.