CERAMICS group Royal Doulton is to cut up to 1,000 jobs.

It is to close its factory in Baddeley Green, Staffordshire, and transfer production of its Royal Albert range to Indonesia.

Of the job losses, 500 will be UK manufacturing jobs. The remainder are primarily in retail closures as it shuts up to 100 outlets worldwide.

Chairman Hamish Grossart said: "At the end of 1998, when we commenced a radical restructuring of the group, which lost £39m in that year, we commented that restoring the group's fortunes would be neither quick, easy nor cheap.

"Since the beginning of 1999, overheads have been cut by 16 per cent, stocks by 40 per cent and debt by 43 per cent and employee numbers reduced by 30 per cent.

"These new measures we have announced are targeted at cutting unit production costs by over 20 per cent, overheads by a further 30 per cent, stocks by a further 25 per cent and employee numbers will reduce by a further 20 per cent."

The group's restructuring in the past three years has seen it close a number of retail units, cut jobs and sell brands such as Royal Crown Derby and Caithness Glass.

Under the new plans it aims to become a "smaller but profitable business" based on its three global brands, Royal Doulton, Minton and Royal Albert.

The company plans to reduce sales by £20m in the next two years, reduce operating expenses and boost margins.

To fund the moves it aims to raise £18.9m through a rights issue at 8p a share.

Shares in the group slumped 24 per cent to 10.5p following the announcement, valuing it at just £8.7m

The troubled group said operating losses for the year to December 31 came in at £12.4m, against £14.7m the previous year. Sales fell six per cent to £166m.

Royal Doulton said the job cuts announced would reduce staff numbers to 3,500.