Just 150 staff are to remain at Xeroxs Gloucestershire plant after it announced 1,300 job losses due to a Flextronics deal this week.

The 147m manufacturing deal will see production of analogue copiers and other office kit switch to Flextronics plants in Europe, but will not affect its graphic arts business. Remaining Xerox staff at Mitcheldean will recondition kit and make fusers.

A spokesman said: "It does not include DocuTech or other high-end machines where we have an awful lot of value, and werent comfortable outsourcing."

Outsourcing will allow Xerox to "ramp up production quickly in high demand and scale down when it lagged," he said.

Xerox is also closing part of its plant in Dundalk, Ireland. Auctioneer Henry Butcher International said assembly gear for a discontinued ink head was for sale.