Dozens of people are set to lose their jobs at Saltaire-based electronics giant Filtronic as the firm battles to remain competitive.

The company, which manufactures components for the communications and defence industries, has announced that 84 people face redundancy next month.

"We're obviously going to make every effort to minimise the impact of redundancies and the company is undertaking an exercise with employee representatives," said a Filtronics spokesman.

He said the redundancies would probably take effect late next month.

"The company regrets that it is being forced to consider this action but it operates in a highly competitive global market," added the spokesman.

"The continued strength of the pound and the ongoing need for the company to move manufacturing operations to China to maintain its competitiveness in that market gives the company no other realistic choice."

Filtronic faces intense pressure from Eastern Europe and the Far East, particularly China. The firm announced only weeks ago that over the past 12 months alone it had increased production in China six-fold.

Two years ago the firm made 28 employees redundant.

Last month Filtronic saw its share price plunge by 15p to a year-long low after announcing a slump in operating profits down from £6.7 million to £3.7 million. Sales were marginally lower at £237.2 million, giving a pre-tax loss of £400,000.

However, independent analysts did not share the immediate gloom and predicted profits of around £7 million next year.

The company, which employs around 630 people, has remained optimistic about the components it produces for third generation mobile phones and said it was planning to increase investment by 50 per cent to £18 million over the next year.

Filtronic, originally formed in 1977, was first listed on the stock market a decade ago. It moved to its present headquarters in Salts Mill in 1995.

During the summer, Filtronic appointed Professor John Roulston as the company's new chief executive, hoping that his long experience in Bae Systems and the aerospace industry would help beef up sales to defence contractors.

Union membership at Filtronic is small. So far there has been no reaction from those facing redundancy.