Hundreds of jobs are at risk at a manufacturing plant in Lincolnshire which is set to close.
Cummins Generator Technologies in Stamford has announced it will shut its facility in Barnack Road in the next 12 months.
The company, which makes generators, employs around 500 people.
Cummins said despite investment and efforts to improve productivity, the factory remains uncompetitive.
A spokesperson from Cummins said, “This was a difficult decision for us to make. We recognise the impact that closing our Barnack Road facility will have, but despite extensive efforts we have sadly not be able to secure a sustainable future for the site.
"By undertaking this reorganisation we will be able to improve productivity, deliver greater value for our customers and ensure that our manufacturing operations remain sustainable.”
“We remain committed to Stamford and believe our new centre of excellence will allow us to establish a deeper technical presence now, and for the long-term. We will be actively working to support our employees and the community during the transition.”
Unite the union said the announcement is ‘a massive blow to the Lincolnshire economy’.
Cummins said they will support employees and the community during the transition.
The firm said it remains committed to maintaining a presence in the town and plans to invest in a new technical centre of excellence at its Ryhall Road facility.
This is expected to create 150 long-term jobs.
The company has had operations in the U.K. for over 50 years and currently has eight manufacturing facilities, employing 4,500 employees in total.