Defence giant BAE Systems is planning to axe more than 600 jobs and close a historic factory which made tanks for the First World War.
The firm said 330 jobs will be lost through the closure of the site at Newcastle-upon-Tyne, which is currently making Terrier vehicles for the Army.
The factory has been a defence manufacturing site since 1847, building a number of ships and employing tens of thousands of workers in its heyday.
Up to 280 jobs will also be lost at three BAE sites in Radway Green, near Crewe, Washington in the North East and Glascoed in South Wales under the proposals, as well as the prospect of 10 job cuts at the firm's head office in Farnborough, Hampshire.
BAE said the proposal to close the Newcastle site at the end of 2013 followed a business review which concluded that there was no prospect of new UK armoured vehicle manufacturing work once production of the Terrier ends next year.
The firm said the proposals now under consultation followed major efficiency improvements and reductions in the amount of ammunitions required by the Ministry of Defence.
Managing director Charlie Blakemore said: "We need to adapt to very challenging market conditions and further reduce our overheads to drive better value for our customers and increase our competitiveness in the export market.
The 1,000-acre site, near Usk, produces a range of munitions.
It started production in 1940 during World War II and the operation has around 700 buildings.
BAE has also proposed the closure of its Newcastle armoured vehicle site with the loss of 600 jobs.
Rehana Azam, national officer of the GMB union said: "BAE Systems have a highly experienced and skilled workforce and these job cuts are yet another blow to manufacturing.
"Representations are being made to MPs to see what can be done to retain skills within BAE Systems and in traditional industrial areas of the UK."
In 2008, the company signed a 15-year deal with the MoD to supply the UK armed forces with small arms and medium-calibre ammunition.
It also included mortar bombs, tank, artillery and naval gun shells, but not weapons such as guided missiles.
The contract safeguarded 1,700 jobs at three factories, including Glascoed.
The deal was initially worth about £2bn and the MoD hoped the contract would rise to a £3bn, depending on how much ammunition was ordered.
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