More than 200 jobs are set to be lost after an engineering firm announced plans to close its Leicester factory.
Thales UK, which makes hi-tech military products for armed forces across the world, blamed the move on a slump in orders.
Bosses at the French-owned company plan to relocate the work from its site in Scudamore Road, Braunstone Frith, to a more modern factory in West Sussex.
Thales spokesman John Warehand said: "We have regrettably announced to employees that we propose to close the Leicester site by mid-2013 and move any remaining work to our Crawley site.
"This means that 205 employees based at the Leicester site are at risk of redundancy. The current business environment is unlike anything we have experienced in recent years and prospects and programmes in our defence sector – both domestic and export – are experiencing significant reductions.
"We will make every effort to minimise permanent job losses and provide support to those affected."
The factory, which makes radar and sonar systems, employs 230 people.
However, 25 staff could either move to Crawley, West Sussex, or work from home. Consultation between the company and the affected staff, who are skilled engineers and office workers, is due to be complete at the end of February.
It is the second major jobs blow to hit this area of the city in two years, after BAE Systems closed its armoured vehicle factory in Scudamore Road in 2011, with the loss of 260 jobs.
Military equipment has been manufactured at the Thales site since the Second World War.
Tom Sawyer, regional officer at the Unite union, which represents about 140 staff at the site, said: "It's extremely disappointing after such a long presence in the city.
"Once these sort of skills are lost they never come back.
"This is a result of a downturn in orders in this sector.
"They have a larger and newer site in Crawley, which is where they're moving to."
John Day, chairman of Leicestershire Chamber of Commerce, said: "This is very disappointing news, particularly as these are hi-tech jobs."
Mr Warehand, of Thales, said the closure would not affect UAV Tactical Systems, a joint venture between Thales UK and Israeli firm Elbit Systems, which creates unmanned military drones.
This business, which employs 85 people in Scudamore Road, has attracted protests from peace campaigners in recent years.
