By FWi staff

PERKINS Engines, which has been a major driving force in powering agricultural machinery, is to close its Shrewsbury-based engine manufacturing plant.

Parent firm Caterpillar blames the loss of 520 jobs on a slowdown in global demand.

The Shropshire site will be phased out during 2002.

Some capacity will be shifted to other sites, including its UK headquarters at Peterborough.