TROUBLED aircraft engine maker Rolls Royce is to close its Newcastle plant next year with the loss of 55 jobs.

The Fan Systems factory in the city's Heaton area is among the victims of the company's plans to scale down production following a slump in demand since the September 11 terrorist attacks in America.

The company plans to transfer production from Heaton, which makes fan cases for the front of aircraft, to Ansty, near Coventry.

A date for the closure has not been set but it is likely to be early next year. Rolls-Royce has started consultations with trade unions to see if any workers can move from Tyneside to the Midlands.

A company spokesman said: "The events of September 11 have reduced engine demand and as a result the overall demand for fan cases.

"The costs associated with running two fan case facilities are too high for the individual workload and the Heaton fan case business can no longer be competitive.

"We therefore propose to transfer production to the Ansty facility and close the facility in Newcastle.

Bill Green, regional spokes-man for the Manufacturing, Sciences and Finance Union, said: "We have started consultation on a reduction in work but at this point in time we haven't got exact plans as to how things would run.

"We will be looking at how we can assist Rolls-Royce in a rundown of production and what kind of financial package can be developed.''