THERE are fears that trials being undertaken by Orange in India could lead to job losses.

As the biggest private sector employer in Darlington, employing about 2,400 workers at its Yarm Road site, possible plans to outsource the company's call centre to Asia present concerns for many local workers.

Angus Allan, corporate finance director at Clive Owen and Co, chartered accountants and business advisors, said: "Whilst the company has said that the outsourcing of work will not lead to closure of any of its UK sites or any redundancies, steps being taken by the company and many others in the call centre industry could be paving the way for a massive departure from the UK."

Competition in the Far East has also led to the final blow for local engineering group Presswork Metals.

Its closure on Thursday, February 24, will see the loss of 110 jobs and its last remaining contract, which accounted for 37 per cent of its £18m turnover last year, being moved to China.

Manufacturing businesses in Darlington and the region have been hit hard by rising steel prices, driven up by China, which consumes 25 per cent of the world's steel production.

Mr Allan said: "Despite increasing business confidence being shown by Darlington business owners, senior economists are predicting the start of a slowdown for the UK economy in 2005.

"To cushion this blow, the Bank of England has frozen the cost of borrowing for the fifth consecutive month, keeping interest rates at 4.75 per cent."

Mr Allan said: "It is hoped that the actual and potential job losses in the region will be compensated for later in the year by the benefits to businesses generally from stable or preferably reduced interest rates."

The index assesses local business activity based on figures filed by a selection of firms in and around the Darlington area over the course of the past month. The business index figures compare and assess current business performance with previous months.

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