ELECTRONICS firm Tamura Hinchley is to stop production in Devizes this summer with the loss of up to 95 jobs.

Employees were told on Tuesday that, because of the substantial losses incurred by the Japanese-owned company in recent months, it was moving production to its overseas factories.

The company's decision mirrors that of vacuum cleaner producer Dyson which announced in February that 800 jobs were to go in Malmesbury when production moves to Malaysia.

Tamura's personnel adviser Brian Ingleson said that global downturn in telecommunications and electronic industries had forced the company to scale down its UK operations last autumn, when its workforce fell from 220 to the present 150.

The continuing strength of the pound over foreign currencies is also blamed for the company's financial situation.

Mr Ingleson said: "The company suffered a substantial loss last year and under the current trading conditions we foresee another large loss this year.

"Additionally the cost of manufacturing in the UK is too high to enable the company to be an effective competitor for business in the world markets."

He said the company greatly regretted having to take the decision to cease production at its Hopton factory. Operations will be scaled down from June onwards with a final closure in August.

Although the company is trying to minimise the impact on the workforce, the closure of the production line could lead to the loss of 95 jobs. There is no union representation at the factory and management are this week in discussion with staff representatives to look at ways of lessening the impact on workers and their families.

Eleven years ago, 180 jobs were lost in the reorganisation following the acquisition of Hinchley's by the Japanese Tamura Corporation.

Southgate House in Pans Lane was sold off to the Wiltshire Health Authority and the company moved to its purpose-built factory at Hopton. Throughout the 1990s it benefited from the growth in the electronics industry, particularly the boom in mobile phones, and by 1999 the workforce had grown to 220.

In June 1999 however, the strong pound and the worldwide recession started to erode the firm's financial stability. It began scaling down its Devizes operation and 60 jobs were lost.

Last year the company reviewed its European operation and another ten jobs went at Devizes just before Christmas.

The factory makes mainly power supply units for various domestic appliances, including audio units and TVs.

A small staff will be kept on at the Devizes site which will continue as a centre for sales, design, engineering, new product introduction and distribution.

The news of the job losses comes as agricultural machinery firm Kverneland is getting ready to close its factory in Folly Road with the loss of more than 80 jobs. The pound's strength over the euro has also been blamed for this closure.

Mayor Ray Parsons said it was a tragedy that Tamura Hinchley was closing its factory with the possible loss of so many jobs.

He said: "Whenever an organisation is under pressure it is local people's jobs that are at risk. It is not just the individual employee that suffers but all his family and friends. I feel for them all. The news from Kverneland and the end of Wiltshire Health Authority, doesn't do much for Devizes."

Coun Jerry Willmott, leader of Kennet District Council, said: "I know everyone has worked hard and it is no fault of the workforce this has happened.

"Kennet will offer assistance to individuals wherever possible and anyone suffering hardship should contact the relevant departments of the council, such as housing benefit and council tax benefit, as soon as possible."