CAE-Link Tactical Simulation Systems, a maker of antisubmarine-warfare simulators for the Navy, will keep its engineering and design operations at its Silver Spring plant, but shift all manufacturing to Binghamton, N.Y., the company announced yesterday.

The result will be a loss of 120 to 125 manufacturing jobs in Silver Spring, but the addition of about 100 more highly paid engineers to the operation here, plant manager Kenneth J. McNamara said. The loss of manufacturing jobs will cost about $3.8 million in yearly payroll, but that will be more than offset by the $5 million payroll for the newly hired engineers.

"Consolidating other operations will enable the company to be more competitive in both the domestic and international marketplace," said CAE-Link President James R. Allen.

Michael Meiselman, president of Local 1140 of the International Association of Machinists and Aerospace Workers, which represents 80 manufacturing workers at the plant, called the company announcement "a little bit misleading." He said he believes a larger number of workers would be let go in the move.

"Our reputation and our work has been winning contracts. Now our labor is being moved to Binghamton," said Meiselman.

McNamara said 25 manufacturing jobs will be retained here. The company currently has a work force of about 550, including 240 engineers.