More than 200 people working at Alstom Electrical Machines Ltd in Rugby will lose their jobs in the New Year.

The Leicester Road company has announced a rationalisation programme because of a lack of orders.

A total of 220 people, 40% of the workforce, will go and the company will announce in two weeks’ time which departments are affected.

The total workforce of 570 was called to a meeting by the management to be told the news.

A company spokesman said that it was hoped they would achieve the numbers required through voluntary redundancies and redeployment within Alstom.

The company also will establish a ‘job help’ facility with professional support to help people to retrain and find alternative work.

Neil White, Alstom’s managing director 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 our company that in the short term we have to reduce our expenditure to match our income, so that when market conditions improve, we will have a basis from which to rebuild our future."

Alstom Electrical Machines Ltd is part of Alstom’s motors and generators business, which employs nearly 800 people in the UK.

The company claims to be a world leader in the manufacture of generators for power generation, motors to drive pumps and compressors in the oil, gas, marine and petro-chemical industries.