NEARLY 300 jobs are to be lost at a Walkden factory.

Eaton Transmissions in Worsley Road North, Walkden, is to cease production by Christmas.

Staff were told yesterday by parent company Eaton Corporation, based in Ohio, USA, that production was moving to Poland.

It becomes the latest in a long line of manufacturers looking to move work from Britain to countries with a cheaper workforce.

The Walkden factory primarily produces transmissions and service parts for heavy-duty trucks and employs 299 people.

The company said an expected downturn in the heavy-duty truck market in 2007 was to blame.

Gary Slinger, plant manager at Walkden, said: "New emissions regulations come into force next year for new heavy-duty trucks, and as a consequence, the market has seen a massive surge in pre-buying to save costs.

"This in turn will lead to a drop in sales of up to 50 per cent, and the company has decided that, when the recovery comes round, it will not return to the levels it is at now, and that our plant will no longer fit into the company's global plan."

Eaton has entered into a 90-day consultation with staff and Amicus, the trade union. Some employees with Eaton's light and medium-duty transmission engineering group - part of the Walkden operation - may be transferred to another site in the North-west, but the rest of the business will move to the Eaton Truck plant in Tczew, Poland.

James Sweetnam, Eaton senior vice president and president of its truck group said: "Today's announcement is very difficult for us because of the great respect we have for our Walkden employees.

"Their contributions and efforts over the years are greatly appreciated."

Eaton Corporation, with 2005 sales of nearly £6 billion, has 60,000 employees worldwid.

The Walkden factory has been a major local employer since it opened in the mid-1960s.

At one time, before a disastrous fire in 1979, it employed nearly 1,000 people.

The factory was re-built at a cost of £20 million and was opened by Prince Philip in June 1982.