After a series of takeovers, GKN is now owned by BAE Systems and currently employs 244 people in Telford.

The company is now considering selling off the site and finding smaller premises which would concentrate on maintenance work.

A spokesman said: "We obviously regret having to reach this decision, and recognise the impact it will have on our employees and the community."

Some work is due to be switched to Newcastle-upon-Tyne, where the firm has another factory.

The company will maintain an after-sales service for armoured vehicles in the town.

"We will work very diligently to mitigate the impact of these losses and will ensure the process is handled professionally and sensitively," the spokesman added.

"Additionally, we appreciate all the support given by the local MPs - Peter Bradley and David Wright - and the efforts of the Minister for Defence Procurement - Lord Bach - during these difficult times."

Consultation with unions has now begun.