A MANUFACTURER in the North-East is to close with the loss of nearly 200 jobs after a month-long battle to save the company ended in failure.

Administrators for Pressworks Metals, in Newton Aycliffe, County Durham, will begin winding down the company after the withdrawal of two main customers resulted in a massive loss of business.

The remaining 190 staff at the company, which supplies parts for the automotive industry, will be made redundant.

The closure move comes after a second major customer, TRW, pulled out of the company late last week, leaving a 37 per cent hole in the firm's order book.

Two weeks ago, Coventry-based automotive supplier Brose withdrew from Pressworks, resulting in 50 redundancies.

Administrators Grant Thornton, of Newcastle, said the major loss of business had made it impossible to keep the company afloat.

Joe McLean, from Grant Thornton, said: "We are now involved in a managed wind-down of the firm.

"For all those involved in the firm, this is very sad. A lot of people have worked long and hard to save the company, and it is not good that it has come to this."

Talks with a potential buyer for Pressworks fell through earlier this week following the withdrawal of global automotive group TRW.

Administrators were earlier thought to be considering five potential bids for the company, including a proposal from the management team.

Mr McLean said the wind-down of the business would take between four and six weeks. He said workers had already been informed of the situation.

He said: "We have kept staff up to date with what was happening right the way through. It has been a very difficult time for them."

Pressworks went into administration four weeks ago, blaming the rise in steel prices for its financial difficulties.

Two more North-East companies have blamed the high cost of steel, thought to be fuelled by massive demand from China, for financial problems.

About 200 jobs were saved at Teesside manufacturer Lionweld Kennedy after it was bought by West Midlands group Hill and Smith earlier this week.

The company had gone into administration with the loss of 37 jobs.

County Durham company Kenmore Refrigeration made 17 of its workers redundant recently, also citing the high cost of steel.