ALSTOM Electrical Machines Ltd today announces a programme of rationalisation for its Rugby site. A reduced level of current and anticipated workload, largely due to the depressed primary markets of oil, gas and petrochemicals, has resulted in the need to review its organisational structure in order to maintain and improve its position in an increasingly competitive market place.

Regretfully, it will be necessary to reduce manpower levels by up to 220 jobs in order to lower costs and sustain the company's competitiveness.

Mr Neil White, Managing Director of ALSTOM Electrical Machines at Rugby said,

"I very much regret having to take such drastic action and it is not a decision I shoulder lightly. However it is essential for the long term survival of Electrical Machines that in the short term we reduce our expenditure to match our income, so that when market conditions finally improve, we will have a basis from which to rebuild our future."

Full consultation with employees and their representatives will commence immediately and it is hoped the need for compulsory redundancies will be kept to a minimum through voluntary methods and redeployment within ALSTOM.

The company will also establish a 'job help' facility with professional support and counselling to work closely with all concerned to help identify alternative opportunities and training, wherever possible, for those affected.