Most of Wedgwood output may move

Tony O'Reilly Jr said the firm was not abandoning its origins

The "lion's share" of Waterford Wedgwood's production would move to Indonesia if a deal with a potential investor goes ahead, the firm said.

The Staffordshire-based company, which faces a deadline from its creditors, is in talks with a private US equity firm.

Tony O'Reilly Jr, from Waterford Wedgwood, said a deal would mean most manufacturing going to Indonesia, where a lot of items were already made.

The BBC's Nick Watson said it would mean about 800 jobs lost in the county.

Mr Watson, Midlands Today reporter, said the move would mean the workforce at the firm's factory in Barlaston, Stoke-on-Trent, falling from 1,100 to about 200 to 300.

Waterford Wedgwood is aiming to cut manufacturing costs after suffering huge losses.

If the deal does not go through, it is feared the company may collapse.

'Changing times'

The firm, which has a site in Jakarta, had been given until Friday to sort out its finances by the Bank of America, which is acting on behalf of its creditors.

Mr O'Reilly said if the move went ahead, some prestige items would still be made in the Potteries.

"We are not abandoning our countries or origin, we are just simply reflecting with the times that are changing in the world and making sure that the business as a whole can continue to have a future and to run profitably," he said.

There have also been reports that the firm may move its headquarters to Indonesia if the deal was successful.

Waterford Wedgwood said in August it planned to cut 300 jobs at its Stoke-on-Trent plant, to reduce costs and return the group to profitability.

Another 95 jobs were put at risk in October.

Stoke-on-Trent South MP Rob Flello said it would be a disaster for the city if the firm folded.

"To have a couple of hundreds jobs left in the city would be terrible but at least we will still have some jobs.

"What would be a real disaster is if Wedgewood went completely."

Gary Oakes, from the union Unity, said it would be a "disaster for the economy of Stoke-on-Trent" if Waterford Wedgwood could not be saved.

The union said it welcomed any move to save the firm, and hoped if a deal was not made, the government would step in to help.