Ford is suffering serious financial problems in the US

The facility, which makes parts for the firm's vehicles, will shut in July after the company decided it had become too uncompetitive.

Ford said there would be no compulsory lay-offs, but unions said it would support "any action" its members decided to take in response.

Ford has cut back its interests in the UK over a number of years.

Jaguar ended production at its Brown's Lane plant in Coventry in 2006, while luxury UK carmaker Aston Martin was recently sold to a consortium headed by former rally driver Dave Richards for �479m.

Redeployment offer

Ford said the foundry, which it bought in 1940, was making annual losses of about �10m.

Again a major employer has made a decision to close a UK plant without proper consultation Roger Maddison, Amicus

Progress had been made in recent years in cutting costs at the factory, the carmaker said, but it stressed that industry-wide conditions remained difficult.

Staff will be offered early retirement, voluntary redundancy or redeployed to other parts of the business.

"Where there is a risk to our competitiveness we have to tackle it," said John Fleming, chief executive of Ford Europe.

Union reaction

Warwickshire County Council added that while its was "certainly a blow" for workers at the plant it would ensure training opportunities and advice were available as quickly as possible for those affected.

Union officials condemned the decision, saying the plant was one of Ford's most efficient operations in the UK.

"Again a major employer has made a decision to close a UK plant without proper consultation," said Roger Maddison, national officer at Amicus.

"Amicus will support any action our members decide to take in order to reverse this decision and protect UK manufacturing."

Fellow union the T&G added it would do all it could to reverse the decision.

Ford has suffered serious financial problems in the US amid falling sales.