Royal Ordnance to close

The UK's last remaining small arms manufacturer, Royal Ordnance, is to close by the end of this year, with the loss of up to more than 400 jobs.

The plant, which is based in Nottingham, was depending on a contract from the British Army for the upgrade of the SA80 rifle.

But this contract has now gone to Germany.

British Aerospace, which owns the factory, says there has been a serious shortfall in workload.

Despite predicted annual orders of £30m, unions are now being consulted over the closure plans.

About 160 members of staff will be given the chance to relocate to another factory in Cumbria.