BAE Systems, Europe’s biggest defence contractor, plans to close one site and cut 1,116 jobs as key aircraft manufacturing and upgrade contracts run down over the next few years.

BAE will begin consultations to shut its site in Woodford, Cheshire, which is set to complete its major contract, the MRA4 replacement for the current Nimrod maritime reconnaissance fleet, at the end of 2012. Some 630 staff will lose their jobs.