Macfarlane, the Glasgow-based packaging group, is cutting 70 jobs at Govan and 20 at Braehead in the city due to the fall in demand from electronics customers like Compaq.

"We said in October that due to a downturn in electrical product demand there would be job losses," said chief executive Iain Duffin.

He also said he was not phased by the fact that Kite Packaging, set up by former National Packaging Group (NPG) chief executive Bruce McInnes, acquired several of Macfarlanes clients and some former NPG staff.

Macfarlane bought NPG in April and merged it with its own merchanting business, Abbott. "If we were to be worried about all the little start-ups that occur then we dont deserve to be in this business," said Duffin.