STAFF at Pressworks Metals will be laid off over Christmas because the company only had orders for six weeks work.

The Northern Echo revealed yesterday that the company will close after two of its main customers pulled out of the County Durham firm.

Administrators for the crisis-hit manufacturer are now in the process of winding the business up.

About 175 staff were asked to remain to complete Pressworks' order book, expected to take between four and six weeks.

This will see staff at the Newton Aycliffe site out of work by Christmas.

Joe McLean, from administrators Grant Thornton, said last night: "Unfortunately, all we can do is keep them in work at Pressworks for as long as possible. We can't do anything to help them once the factory closes.

"I have spoken with all the workforce and we very much hope they will stay to finish the order book."

Mr McLean said there was a slight chance part of the business could be sold before the six-week period was over, safeguarding some jobs.

But he said: "The chance of that happening is very slim and it is important to stress that at the moment it is no more than just speculation."

The withdrawal of two main customers in the past two weeks wiped out nearly 40 per cent of the company's business.

Car parts supplier Brose pulled out of Pressworks two weeks ago, followed by global automotive group TRW, which withdrew its support earlier this week.

Pressworks, which makes components for the automotive industry, went into administration a month ago, citing rising steel prices for its financial difficulties.