BELEAGURED engineering giant Alstom is continuing to wield the axe on its UK operations.

The French-owned company, which is more than £2 billion in debt, caused outrage by announcing the closure of its train care depot in Eastleigh with the loss of more than 500 jobs.

Now Alstom is under fire from unions for plans to sell off its power engineering division in the UK, France, Germany and the US.

Union Amicus has warned that the sale, thought to be to a financial institution, could lead to asset stripping and the loss of jobs at the company's plants in Rugby, Kidsgrove and Glasgow, employing more than 1,000 people.

Peter Skyte, Amicus officer for the electrical engineering industry, said: "We condemn the company's secrecy and haste which will create great uncertainty for employees, customers and suppliers.

"Rumours of possible purchase by a financial institution can only create the fear that this will be driven by asset stripping for short-term financial gain rather than to retain the skills of the workforce and longer term manufacture of products key to maintaining Britain's manufacturing future."