Defence giant BAE Systems confirmed it is considering closing one of its major shipyards, which could threaten more than 1,000 jobs.
A spokesman for the Scottish Government said:
BAE Systems is an important employer in Scotland.
We will monitor this situation closely and work with BAE with the aim of ensuring any future plans protect the interests of employees and shipbuilding in Scotland.
Defence giant BAE has confirmed it is considering closing one of its major shipyards in a move that could threaten more than 1,000 jobs.
BAE's UK chief executive Nigel Whitehead told The Sunday Telegraph a decision was expected by the end of the year.
The future of its three major bases - one at Portsmouth and two in Glasgow, at Govan and Scotstoun - has been under threat after BAE launched a review of its maritime operations this year.
It is believed Portsmouth is most at risk and a closure could reportedly put about 1,500 jobs at risk.
Mr Whitehead told the newspaper that plans for a "reduction in footprint" could see "the cessation of manufacturing at one of the sites".
"We will be making decisions this year," he added.
The Prime Minister is visiting the United Arab Emirates (UAE) to encourage a potential sale of 60 Typhoon jets made by the British firm BAE Systems.
The deal is worth around £3 billion and would secure thousands of jobs in the UK.
Britain is aiming to secure sales of over 100 aircraft to the wider region in deals worth £6 billion.
But there is tough competition from France, which has been working on a deal to sell its Dassault-built Rafale aircraft to the UAE.
A potential multibillion pound merger between defence giant BAE Systems and Airbus aircraft manufacturer EADS came under pressure after a major shareholder demanded a better deal.
French media tycoon Arnaud Lagardere, who is EADS chairman and whose company Lagardere owns a 7.5% stake, wants better terms for French controlling shareholders.
Lagardere urged EADS management to complete "without delay, the indispensable re-examination of the project to combine EADS and BAE".
EADS chief executive Tom Enders is understood to have held talks with the billionaire in a bid to salvage the deal, which would create the world's biggest aerospace company.
"It's absolutely not surprising that some shareholders are concerned about the benefits and their returns," Enders said on Monday night, the Daily Telegraph reported.
The deal, which UK unions fear would trigger thousands of job cuts, will require the approval of the British, French and German governments.
Political interference is putting pressure on merger talks between BAE Systems and Franco-German company EADS.
Read the full storyA business review which concluded that there was no prospect of new UK armoured vehicle manufacturing work once production of the Terrier ends next year. BAE said Newcastle site would close at the end of 2013.
Managing director 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.
The firm said the proposals, now under consultation, followed major efficiency improvements and reductions in the amount of ammunitions required by the Ministry of Defence.
The firm said 330 jobs will be lost through the closure of the site at Newcastle-upon-Tyne, which is currently making Terrier vehicles for the Army.
Up to 280 further jobs will also be lost at three BAE sites in Radway Green, near Crewe, Washington in the North East and Glascoed in South Wales under the proposals, as well as the prospect of 10 job cuts at the firm's head office in Hampshire.
The factory has been a defence manufacturing site since 1847, building a number of ships and employing tens of thousands of workers in its heyday.
BAE Systems is planning to axe more than 600 jobs and close its historic factory in Newcastle upon Tyne, which made tanks for the World War I, the company announced today.
