THE owners of North-East engineering company Cleveland Bridge last night moved to quash rumours that its steel fabrication plant in Darlington would close.

The Saudi Arabian group Al Rushaid, which became the majority shareholder in the company in 2000, said in a statement that despite rumours in the media, Cleveland Bridge would "continue to have a UK steel fabrication site at its core".

The group admitted that the company had had an eventful year, but said it remained fully funded and open for business.

It said it would use its team of design experts in Darlington as it attempted, through Cleveland Bridge's sister company in Dubai, to dominate business in the Middle East and expand its activity elsewhere in the world.

Cleveland Bridge has had some of the most turbulent times in its 127-year history this year.

It had to make more than 300 workers redundant in Darlington because of a lack of work and is locked in a bitter legal row with Multiplex, its former employer at the new Wembley Stadium.

But a spokeswoman said Cleveland Bridge had a full order book until June.

Thirty five engineering workers, who were among 95 due to be made redundant this week, are to be kept on until at least March.

The company has started work on the Messina project, in Italy, the world's largest suspension bridge, and the Subiyah Crossing, in Kuwait. It is also hoping to win contracts in the US, Greece, Romania, the Middle East, China and India.

The spokeswoman said the company was pursuing an aggressive campaign to try to win more contracts around the world.

She said: "There is domestic business coming in and international work coming in. We are very positive."

The Al Rushaid statement said: "Cleveland Bridge is a great company and is recognised worldwide for its skills in bridge construction and bridge refurbishment.

"The company's technical know-how is key to its success and it is this that underpins its ability in the contracting arena.

"There is no doubt the recent dispute with Multiplex over the Wembley National Stadium project disrupted the business for a brief period.

"But we can say that Cleveland Bridge remains fully funded, open for business and we will continue to market this strong brand, which has great recognition around the world"