THE conflict in Lybia has hit demand at a Tees Valley training business, which is closing one of its North-East sites and making 25 people redundant.

TTE Technical Training Group remains confident that a restructure will make the business more sustainable without impacting on the quality of its engineering apprenticeship scheme.

The not-for-profit business was forced to close down operations in Lybia last month after the popular uprising against Colonel Muammar Gaddafi led to a Nato-led military intervention in the country.

TTE has a long-standing relationship with Lybia where it trains apprentices in the oil and gas industry for the likes of Shell and German firm Wintershall.

TTE managing director Steve Grant said pulling out of Lybia for an indefinite period was "a blow", but that it would not hold back its determination to continue training hundreds of apprentices in the North-East and overseas.

"We compete for contracts with major global businesses, which for a small company in Teesside, isn't bad going," said Mr Grant. "The conflict in Lybia broke out just as we started recruiting. What happened could not have been foreseen and we can't let it distract us from the job in hand."

Business Minister Mark Prisk last night underlined the importance of organisations like TTE when he expressed concerns that there could be a shortage of young people going into engineering jobs. Mr Prisk warned about the danger of companies possibly moving production abroad if "we sit on our hands and do nothing" about equipping young people with the right skills. After being deluged by the highest number of applications in its 20-year history, TTE will begin training 120 young people in September. More than £500,000 has been invested to upgrade its site in South Bank with state of the art workshops and equipment. Its smaller training facility at Wilton will close.

The company said the proposed redundancies from a workforce of 119 would come mainly from administrative positions and staff in duplicate roles.

"No one likes to lose members of staff and it was not a decision which we made lightly, but it is being done for the long-term sustainability of the business," added Mr Grant who became managing director in January after seven years as finance and services director at the organisation.

"There was duplication with some of the equipment on both sites so it made good business sense to consolidate things in one location. It's important that we run things as tightly as possible as any profits we make are ploughed back in to training more apprentices."

If your company is interested in sponsoring an apprentice call TTE on 01642 462266 or visit www.tte.co.uk