A world-leading technology company in Great Yarmouth has announced up to 25 jobs are to go in a restructure of the business.

The announcement by RF2M Microelectronics (RF2M UK), which currently employs 184 people at its factory on South Denes, was described as 'very disappointing news' by borough council leader Trevor Wainwright.

The firm, formerly known as C-Mac, was bought out two years ago in a £21m takeover by US giant API Technology which said at the time that it hoped to reverse plans already in train for up to 60 job losses through increased business activity.

RFTM UK was established in Yarmouth more than 60 years ago and has earned a worldwide reputation for supplying electronic systems, modules and components to the defence, aerospace, space and energy industries.

Matthew Richards, RF2M UK's managing director, said: 'This restructuring proposal is designed to ensure that the company is positioned to invest in future growth opportunities, building on our outstanding heritage and reputation in high reliability microelectronic design and manufacturing.'

He said their immediate focus was the employees affected and they would be working with the union Unite, staff representatives and employment organisations to minimise the impact on staff.

Mr Wainwright said: 'This is very disappointing news as C-Mac has been one of the town's leading firms for many years. However, the defence cuts in this country and worldwide must inevitably cause difficulties for companies with contracts in that sector.

'Generally, there has been encouraging business activity across the borough and we have had tremendous interest from firms looking to move on to Beacon Park in Gorleston.'

The last time jobs at the Fenner Road site came under threat, Unite said it would fight to save the highly-skilled positions and described the situation as a 'hammer blow' to the town.