Glenrothes firm Phoenix Precision, which supplies sheet metal to NCR supplier Texol Technical Solutions, warned more livelihoods could be at stake than first feared.

Managing director Chic Brodie, who said he was a former international distribution manager at NCR, told the Evening Telegraph today, “I do sub-contract work through Texol. We have contingency lines in place so the impact won’t be major.

“Everybody is going to be affected to a lesser or greater degree depending on their volume of work with NCR. I know of a few companies in Angus and Fife who may well suffer.

“We also don’t know if they will use existing suppliers when they move everything to Hungary.”

Brian Frame, Texol managing director, said the future was uncertain for his firm but he remains confident business already conducted with other NCR plants around the world will safeguard jobs.

“Short term, we don’t see anything happening. We still have to find out details — if it is just a straight transfer, it will not be huge for us.

“The other news about closures of manufacturing in Canada and Brazil – that has an impact.”

Mr Frame stressed he didn’t want to pepper yesterday’s bombshell with further job fears talk, but admitted he could not give any guarantees in today’s global economic climate.

The Tele was told yesterday jobs at neighbouring DS Smith Packaging, which makes custom built pallets for NCR cash machines, could be placed under serious threat by the cuts.

As NCR production ground to a halt, only a skeleton staff manned the DS Smith premises.

Today, plant manager Nigel Hobson was putting on a brave face, insisting talk of job losses were premature.

Meanwhile, retailers in the city are understood to be uneasy over the impact an unemployment surge could have on trade but the City Centre Action Group was reluctant to predict the extent of the potential damage.