The company has shed thousands of jobs

The company says it plans to replace older buildings with more efficient facilities.

The job losses will be spread equally between Derby, Hucknall and a third factory in Bristol.

The move will mean the closing one of its most historic buildings in Derby.

The Main Works were built in 1908 but Rolls-Royce says it is no longer appropriate for the high-tech aero-engine industry and costs too much to maintain.

The proposals, which will be put out for consultation, involve building new facilities.

Other work may be transferred to other Rolls-Royce facilities or other suppliers.

Difficult trading

The Light Alloy Foundry in Derby would be expected to close and the engine repair business would move out of Wilmore Road.

The latest moves come after 3,800 UK job losses in October 2001.

A statement from the company said: "We are constantly looking at ways to improve the operational efficiency of all our businesses and sites. This is particularly important given the current difficult trading conditions."

Rolls-Royce, which employs 22,500 people in the UK, has not disclosed how much it plans to spend on the restructuring or where the new facilities will be.