NEARLY 100 workers at a Strood engineering plant could to lose their jobs because of a slump in orders for luxury cars.

Alloy Wheels International, in Priory Road, Strood, blames the redundancies on the aftermath of the September 11 terrorist attacks in New York.

The company says up to 98 of its 308 employees, ranging from office staff to shop floor workers, will be told on March 22 if they are affected.

It is the second time in under two years the firm has faced major job losses. Two hundred staff were made redundant in May, 2000.

For the past six months Alloy Wheels has been struggling to cope as demand for luxury cars has decreased. Predictions for the future have given the company no hope that things are going to pick up in the short term, although the medium term forecasts are thought to be encouraging.

Any up-turn in the company's fortunes has also been hampered by the failure to find a new owner, despite a 12-month search, which has affected the securing of any new contracts.

The 65-year-old firm had only recently started to pick up sales after deciding, back in May 2000, to concentrate on being a specialist wheel manufacturer.

Operations director Paul Merritt said: "Our ability to remain flexible to changing market conditions has become key to our continuation and we deeply regret the need to restructure after recent successes.

"Our strategy as a specialist wheel manufacturer is working. The quality of our workforce has enabled us to deliver this strategy, but circumstances beyond our control have led to this unfortunate decision."