THE defence company BAE Systems may be forced to cut around 100 jobs from its Glascoed site near Usk.

The company made the announcement last week after facing up to a nationwide problem. More than 600 redundancies could be made across the UK, including the possible closure of an entire factory in Newcastle-upon-Tyne.

BAE Systems is currently in consultation with trade unions to discuss the impending cuts.

The Glascoed base is the head office for Global Combat Systems Munitions and it focuses on the fill, assembly and pack for a range of munitions. The company has blamed the potential cuts on a decreased demand for new defence equipment as well as increased company efficiency.

A spokesman for the company stressed that of the 100 jobs that could be lost, 80 per cent are fixed-term and agency workers, and only around 20 permanent positions will be lost.

Efficiency improvements apparently stem from a £200million transformation program launched in 2008, in which £50million was spent at the Glascoed site.

The announcement has apparently not come as a surprise to workers, who were briefed by the company in April about the uncertainty of the business' future.

Managing Director at BAE Systems Charlie Blakemore said; "We need to adapt to very challenging market conditions and further reduce our overheads to drive better value for our customers and increase our competitiveness in the export market.

"I know that this is difficult news for employees and we will do all we can to help them through this difficult period and mitigate the proposed job losses wherever possible."