UPDATE 1-Kadenko to cut 1000 contract jobs - Nikkei

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Dec 20 (Reuters) - Kandenko Co plans to shed about 1000 short-term contract workers to save costs and to cope with reduced business from the beleaguered Tokyo Electric Power Co, the Nikkei business daily said.

Nikkei said the job cuts will come from among the 2,000 or so temporary workers with 3-6 month contracts.

Kandenko will also put a freeze on renovations of its sales offices.

Also the company will wait to replace aging construction vehicles until they have been in use for about 10 years instead of 7-8 years, the daily said.

Through these steps, the firm seeks to save 5 billion yen ($64.3 million) this fiscal year, the Nikkei said.

Kandenko is getting less work from Tepco in the wake of the Fukushima Daiichi nuclear disaster, and sales from Tepco work are projected to tumble about 22 percent in the year to 153 billion yen, the daily wrote. ($1 = 77.7400 Japanese yen) (Reporting by Arnav Das Sharma in Bangalore)