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A QUARTER of the workforce have lost their jobs at the St Athan-based Defence Aviation Repair Agency (DARA).
Welsh Secretary Peter Hain yesterday confirmed 550 positions would be slashed at the company, which employs more than 2,000 people repairing Harrier and Tornado jets for the RAF.
But he confirmed the £77m Red Dragon project would still go ahead and that the centre had a secure future.
Mr Hain told the Welsh Grand Committee: "The constant change in today's global economy means we have to contend with some job reductions from time to time, such as this announcement, which I very much regret.
"DARA has a strong future, the Red Dragon project still holds great promise for the economy of South Wales and defence still accounts for around 6,500 permanent jobs in Wales."
The job losses are a result of the MoD's review of aircraft maintenance.
Vale MP John Smith has reacted angrily to the news.
He said: "Ministers have been under pressure on this but they gave a commitment a couple of months ago that the Red Dragon project is going ahead.
"This decision is split into two. Half the job losses is a management decision by DARA. It's about efficiency savings.
"The other half is giving work back to the RAF and, quite frankly, it makes no sense at all because it goes against government policy.
"The RAF wants work back that it lost over the last five years with the creation of DARA.
"The RAF can do the repair work but it will cost the taxpayer a fortune. It is best carried out by civilians on a commercial basis."
Alun Cairns, the Welsh Conservatives' economic development spokesman, added: "These job losses may be the thin end of the wedge, and may well cost so many more than have been announced. In combat, cost cutting usually costs lives."
Assembly Member David Melding added: "This is a blow for the Vale. I will be calling on the Assembly to fight this decision."
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