Currency production company De La Rue announced extensive redundancies yesterday as it moved to phase out the printing of banknotes on the island.

The company did not say how many people would be losing their jobs but the General Workers’ Union later revealed that De La Rue planned to axe 300 jobs over two and a half years.

In a statement, the company said the currency printing facility would be replaced with a centre of excellence for identity and security products.

De La Rue is the world’s largest supplier of passports.

A spokesman said the company would enter into negotiations with employee representatives on the current situation and the number of dismissals.

“De La Rue will consult on these proposals with the relevant unions and elected representatives.

De La Rue will consult on these proposals with the relevant unions and representatives

Approximately £15 milion (€21.3 million) will be invested in equipment and skills to create the centre for excellence at De La Rue’s current site in Malta.

This equates to half the investment being made by De La Rue globally,” the spokesman said.

CEO Martin Sutherland said the current banknote printing facility in Malta would be “phased out”, meaning redundancies would be staggered.

GWU general secretary Josef Bugeja said that the union would be meeting the company management to begin discussions.

The union opposes the proposed reductions and will also be speaking to government authorities to address the situation of the affected workers.

In a statement, the government said it was pleased to hear the company would be opening a centre of excellence on the island.

The government also committed to working towards finding alternative job opportunities for all the employees who would be adversely affected by the restructuring.

“The economy is in a good position to absorb any workers who lose their jobs at De La Rue,” it said.