A PRESTON transport firm has announced that 500 jobs could be lost.

Alstom, based on Channel Way, Ashton, will be closing its transit branch from the end of this year, blaming a decline in the market for the move.

The firm designs and builds railway equipment.

Bill Conn, managing director of the site, said: "We very much regret having to take this action, but we just do not have sufficient work to maintain the Transit business here.

"Flexible hours and work from other sites have been the only things keeping us going for the last 18 months, but these are no longer viable options.

"We will be talking to our employees and their Trade Union representatives in an effort to find ways of minimising the impact of the redundancies, whilst meeting our remaining customer commitments."

Alstom say will be introducing a voluntary redundancy programme for transit employees, and taking steps to help find alternative employment.

The firm say their Renovation and Parts business, also based in Preston employing 200 people, will not be affected.