ABOUT 20 jobs have been saved at redundancy-hit manufacturer Mono Containers.

However, union officials conceded it was unlikely any more jobs could be secured at the Durham company.

That means about 60 staff will still lose their jobs, with the company setting a deadline of December 16 for voluntary redundancies.

Bosses at Mono, which makes pre-formed plastic cups for the food industry, met union officials on Friday and agreed the reduction in job losses - originally set at 83.

Nick Halton, of the Transport and General Workers' Union, said a further meeting was planned for tomorrow, but the chance of saving more jobs depended on the company winning contracts.

Mono recently lost contracts to supply Arla Foods and Yeo Valley.

Mr Halton said: "The situation here is changing from day to day, so it is impossible to say what will happen, but with the position as it stands, it is unlikely we will see any more jobs secured."

Workers at the factory had accused the company of reducing operations at the site to make way for a planned retail development.

Planning application for the development was granted last year by the Office of the Deputy Prime Minister following a public inquiry.

But a spokesman for Mono said the retail plan would not affect the manufacturing business.

The spokesman said: "We have been up-front about this development right from the start. The retail park is in no way intended to replace the manufacturing, rather, it is hoped the development will create revenue that can be re-invested into the main business."

Planning officers at Durham City Council confirmed planning permission did not refer to the part of the site where the factory is located.

The company also rejected rumours that Mono was winding-down its dairy business.

The spokesman said: "All we are doing is looking at our margins and addressing the unprofitable parts of the business. We are not focusing on any particular part, just areas where we are losing money.