A FOOD container company could potentially offer a lifeline to 67 workers facing a choice between moving to Holland or losing their jobs.

Packaging firm Veriplast UK yesterday announced that it was ceasing production at its loss making factory at Dragonville, Durham City, next month.

The factory buildings, which started operating in 1946 making ice cream tubs for Walls and Lyons, have been sold to fellow food packaging firm Faerch Plast.

The Danish company will turn the facility into its first UK production plant, creating a "substantial" number of jobs.

Veriplast has offered its 67 workers the choice of moving to one of its production sites in Holland or taking redundancy.

But yesterday Faerch Plast did not rule out taking on former Veriplast staff when its facility opens at the site next year.

Joe Iannidinardo, managing director of Faerch Plast UK said: "There is no reason whatsoever why they shouldn't apply for a job."

Although Mr Iannidinaro could not put an exact figure on how many jobs would be created Faerch Plast, which makes food packaging trays for ready meals, presently employs around 500 staff at two production facilities in Denmark and the Czech Republic.

He said: "There will be substantial employment created at the plant. I think initially it will be about 50 we employ.

"The plan is to refurbish and upgrade the buildings and some of the equipment that is left and we intend to do that over the next few months.

"The current plan is to have an official opening on May 1 next year."

Veriplast said that employees at Dragonville who did not wish to move to its Standdaarbuiten plant in Holland would be given generous redundancy terms, as well as support in retraining and looking for new jobs.

Veriplast UK managing director Chris Hart said: "This decision has been taken with very deep regret.

"Unfortunately the business of Veriplast UK Limited has been in steady decline over recent years and this is reflected in our financial performance."

In the last five years the UK business made losses just short of £15m and in 2007 announced plans to make half its then 165 strong workforce redundant.

"These losses, which are unsustainable, have been caused by declining sales and increased costs," Mr Hart said.

"A number of steps have been taken to try and address this combination. Unfortunately despite everyone's best efforts, these measures have not produced the kind of changes required and the move to Holland is essential," he added.