UNCERTAINTY is hanging over workers at the MG Rover factory in Longbridge, as a planned £1.5m deal with a Chinese car company looks set to go ahead.

A report in the 'Observer on Sunday' said that 3,000 jobs could be axed if the proposed tie-up with Shanghai Automotive Industry Corporation goes through - almost half the 6,500 employed at the site.

Residents of Bromsgrove, Cofton Hackett and Rubery have long been linked with the Longbridge-based plant, as the largest manufacturing employer in the area, and it has been often said that if Rover sneezes Bromsgrove catches a cold.

In May 2000, when German owners, BMW, sold MG Rover for £10 to Phoenix Venture Holdings - the height of the Rover crisis - 1,400 residents of Bromsgrove district worked at the car manufacturer.

However, economic development officer for Bromsgrove, Peter Michael, said while MG Rover was unable to give him an exact figure of how many people from Bromsgrove worked for them it was now thought to be considerably less than 1,400.

Now Bromsgrove District Council has to consider the effects the potential swingeing job cuts could have on the town's economy.

He said: "This will have an effect on employment and demand for supplies within Bromsgrove district, but Bromsgrove manufacturers have diversified and are less dependent on Rover than 10 years ago.

"Motor suppliers win business from other car makers like Peugeot, Toyota, Jaguar and BMW, now building the Mini in Oxford.

"However the main growth for business and employment is outside the motor industry."

He added: "The council lobbied hard to get Bromsgrove Technology Park - which will create around 700 new jobs.

"We are also encouraging another major development within the district which will bring in 200 plus jobs. And we sponsor small business start-ups for those considering self-employment," said Mr Michael.