Downturn in aerospace industry claims 650 jobs at GKN plant

The aerospace giant GKN is to axe up to 650 jobs at its site at Cowes on the Isle of Wight because of the downturn in the civil aerospace market. The cuts will be phased in over the next year.

Sir Ken Jackson, general secretary of the Amalgamated Engineering and Electrical Union, said the cuts would be a "horrendous blow". TheCowes plant employs about 1,500 and more than three-quarters of the site's activity is related to civil programmes. A company spokesman said the site had been particularly hard hit by the downturn in the civil aerospace market, which had worsened since the US terrorist attacks.

Marcus Bryson, GKN's European chief executive, said: "We must respond to this sudden change in circumstances. We had already taken steps to deal with the cyclical downturn we began to experience in early 2001 but, since 11 September and the dramatic reduction in air travel, virtually all of our customers have either cancelled or severely reduced production requirements. In addition to a regrettable but necessary reduction in employee numbers we are taking steps to improve our ability to capitalise on the opportunities available when market conditions improve."

Mr Bryson said he was aware of GKN's importance to the island and pledged to offer a "high level of support" to help people find jobs. Some of GKN's operations, including machining, will end at Cowes and work will be consolidated on to two sites.

Sir Ken said AEEU officials would be meeting the company to try to mitigate the effect of the cuts. He said: "The aerospace industry is suffering because of the 11 September outrage but it also has fundamental weaknesses. The Government and the industry need to address issues including skills and research and development."