Caterpillar sheds factory workers

The construction industry company Caterpillar has laid off more than 300 workers at its Leicestershire plant.

About 320 temporary staff based at the company's site in Desford have been told that their contracts will not be renewed, Caterpillar has confirmed.

The company blamed "world financial events" for the decision affecting the factory which assembles machines for the construction industry.

It still employs about 1,000 full-time staff at the site.

The US-based firm employs more than 12,000 people in the UK.

We hope these reductions will be of a temporary nature Caterpillar spokesman

The Leicestershire site was the first major Caterpillar factory outside of America.

A company spokesman said the cuts were as a result of a "re-evaluation of market conditions and production levels".

He said: "Our previously very positive outlook has started to shift in the light of world financial events and a general softening in the European residential construction market.

"We regret this action is necessary but believe it is ultimately in the best interest of our business, and serving our dealers and customers."

"We hope these reductions will be of a temporary nature and hope to re-employ them in the months to come. It depends on the strengthening in demand of our products and other factors."