A PLASTICS engineering company which is one of Malvern's oldest businesses has had to make 12 redundancies as it struggles to cope with the current manufacturing slump.

Spring Lane-based L G G Charlesworth says the job cuts, made over the past three months, were necessary as part of a drastic restructuring effort.

The family-run company - in business since 1940 - is now concentrating its efforts on higher-volume product lines which will be more profitable.

"We are almost creating a new company," said Phillippa Charlesworth.

"We have had to outsource a lot of the work we previously used to do in-house."

These include areas such as tooling, which is now being done by a firm in China.

"We cannot get away from the fact that British manufacturing has a hard time competing with companies from eastern Europe and Asia."

She said Charlesworth was picking up substantial orders, including one for the aerospace combine BAE/Matra, though she could not disclose more details.

She added that the firm was preparing for a £ million investment in plant and machinery.