UP TO 50 engineering jobs could be at risk at one of East Lancashire's leading aerospace contractors.

Gardner Aerospace has announced it is merging its operations in Colne and Burnley as part of a radical restructuring of the company.

Gardner Group announced in January that it was closing its automotive division and selling off its aerospace business after being faced with crippling debts.

Cleveland Guest in Colne and Pendle Aeroform in Burnley, which together employ around 200 people, are part of the aerospace division of the troubled Midlands-based group.

A company spokesman said manufacturing would continue in both towns, but confirmed the merger could lead to 50 redundancies.

The bulk of the job losses are expected to be at the Colne factory, but some staff

might be able to transfer to Burnley.

Former Lancashire Evening Telegraph businessman of the year, Steve Hollis, is understood to be heading a management buy-out bid for Gardner Aerospace.

He has resigned as chief executive of the Gardner group and is believed to be raising finance for a bid.

Mr Hollis won the Lancashire Evening Telegraph business person of the year title for his success in leading a management buy-out of Cleveland Guest in the early 1990s.

The Colne site, which supplies precision-machined components to major aerospace firms, was bought by L Gardner in 1998.

Pendle Aeroform supplies a range of precision manufactured components to a number of companies including British Aerospace, Shorts, Boeing and Hurel Dubois.

The company was bought off receivers by L Gardner in 2000.