NINETY-four jobs have been axed at the two Worcestershire sites of United Engineering Forgings.

The vehicle components supplier has been forced to cut 66 jobs at Kidderminster and 28 at Bromsgrove, after suffering substantial losses over the last two years.

It was also announced that the company pension scheme would be wound up due to the high cost of the redundancies.

The independent scheme trustee urged the company to finish it before cuts were announced, preventing the strain on scheme funds affecting remaining younger members.

This protected the contributions of all scheme members.

UEF, the largest independent forging business in the UK, formed from a division of British Steel in January 1997 and went into administration on Tuesday, June 12.

Myles Halley, joint administrator from KPMG in Birmingham, which offers advice and assistance to insolvent companies, creditors and stakeholders, had previously warned that redundancies were inevitable.

He said the firm, which supplies axle beams and crankshafts to vehicle makers, looked like "a pretty good business" but had been making losses.

Bob Bates, UEF's chief executive, confessed it was a difficult day for the company, but believed in its strong market position and high level of customer confidence.

"The group has been in discussions with various interested parties over the last 12 months," he said.

"However, a deal could not be concluded within the necessary timescale and a petition was presented for the group's administration."

The redundancies have been made after a two-week consultation period with union representatives and employees.

In addition to the Kidderminster and Bromsgrove sites, which have a 770-strong workforce between them, four jobs have been cut in Lincoln.

The company reported a turnover of approximately £120m in June, employing 1,595 people in six locations.