DEBT-LADEN engineering group FKI plans to close or sell parts of its business with the loss of 700 jobs.

FKI, based in London, said it planned to close eight loss-making units with a combined turnover of £50m and sell four more, leaving it with five key businesses.

The group, which had debts of nearly £500m in March, said about 350 of the job losses would be in the UK, with the rest coming from its overseas operations.

FKI refused to identify the businesses to be closed or sold. The company employs more than 14,500 people, operating mainly in Europe and North America.