MORE than 500 staff employed at an ailing Bromsgrove firm which has been put on the market may learn of their fate this week.

News that car component manufacturers United Engineering Forgings, formerly Garringtons, at Aston Fields is facing serious cash problems and had called in administrators sent a shock wave round the district last week.

Myles Halley joint administrator from KPMG in Birmingham has warned there has to be "significant cost cutting" at the company to enable it to return to profitability.

On Monday a KPMG spokesman said he expected an announcement this week regarding the number of redundancies and the plants affected.

UEF formed in 1977 from the forgings division of British Steel, operates at six locations in the UK and employs a total of 1,595 staff.

Bromsgrove is the group's headquarters and has the largest number on the payroll.

Duncan Simpson Amalgamated Engineering and Electrical Union national officer, who has been engaged in talks with the administrator, met the workforce at Bromsgrove on Monday to keep members briefed.

He warned that the administrators for their part must be open and fair with the workforce to main their goodwill.

District council leader Cllr Nick Psirides (Con, Norton) said: "We are very concerned for the number of people likely to be affected directly or indirectly.

"The council tried to help recently when the firm wanted to release about 20 acres of land for development which would have ease is cashflow problem."

Town MP Julie Kirkbride commented: "I'm very concerned for the uncertainty created for the workforce. We desperately need a buyer quickly and if there is anything I can do as the local MP to help I will."

Labour group leader on the district council Cllr Peter McDonald (Uffdown and Waseley) said several local firms are suffering financial fall out from UEFs problems and advised them to seek advice from Advantage West Midlands.

It was set up by the government at the time of the Rover crisis to help local businesses.