A GWENT DVD manufacturer is to shed 80 jobs in a bid to cut costs and secure the future of the company.

Cwmbran-based firm Technicolor Home Entertainment Services made the announcement to shocked staff yesterday.

It is the second jobs blow in a matter of days for the area, following the closure of a Newport meat factory on Wednesday.

The 52 workers at TH Sutcliffe's de-boning plant on the Leeway Industrial Estate were sent home and the receivers called in.

Bosses at Technicolor have entered a 30-day consultation period with Union representatives. Employees are expected to leave their jobs within three months.

The company told the Argus they had to make the cuts as the DVD market has seen a significant reduction in growth during the last year.

Technicolor are moving four production lines from the Cwmbran site to their factory in Poland where production costs are cheaper.

The 80 job cuts are from a workforce which stands at 393. The blow comes a year after Technicolor made 65 employees redundant a year ago.

One production worker, who did not wish to be named, said: "It was an absolute shock.

"There's a lot of people speculating about who will go at the moment and people are nervous. I've started looking on job websites already just to be prepared."

A company spokeswoman confirmed the bulk of the job losses would hit the shop floor in the production department.

The spokeswoman said: "It is sad news for the workers and we'll be doing all we can to offer them support.

"Clients are simply not prepared to pay what they were a few years ago. If you do not react then you put your company at risk."

The global firm has offices and factories throughout the UK, Europe and Australia, employing 2,200 people. The Cwmbran site at Llantarnam Industrial Park is the main production base in the UK. The factory can produce 250,000 DVDs each day.

It is thought TH Sutcliffe's problems stem from the high price of beef since the lifting of the EU export ban. The company refused to comment further when approached yesterday. The company's abattoir in Caernarfon closed on Wednesday.